ABC Company sells swimwear for men and boys. The average selling price and variable cost for each
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Question:
ABC Company sells swimwear for men and boys. The average selling price and variable cost for each product are as follows.
Men's | Boys' | |
Selling price | $28.80 | $24.00 |
Variable cost per unit | $20.40 | $16.80 |
The company sells two units of Men's for each unit it sells of Boys'. Fixed costs are $38,400.
What is the break-even point in dollars for each type of swimwear if ABC Company faces a tax rate of 30%?
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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