Question: Fleet Foot buys hiking socks for $ 6 a pair and sells them for $ 1 0 . Monthly fixed costs are $ 1 0

 Fleet Foot buys hiking socks for $6 a pair and sells

Fleet Foot buys hiking socks for $6 a pair and sells them for $10. Monthly fixed costs are $10,000(for sales volumes between 0 and 12,000 pairs), resulting in a breakeven point of 2,500 units. Assume that Fleet Foot has been selling 8,000 pairs of socks per month.
Read the requirements.
Requirement 4. To compensate for the lower sales price, Fleet Foot wants to expand its product line to include men's dress socks. Each pair will sell for $7.00 and cost $2.75 from the supplier. Fixed costs will not change. Fleet expects to sell four pairs of dress socks for every one pair of hiking socks (at its new $9 sales price). What is Fleet's weighted-average contribution margin per unit? Given the 4:1 sales mix, how many of each type of sock will it need to sell to breakeven?
Complete the following table to compute the weighted-average contribution margin per unit. (Enter all amounts to the nearest cent.)
\table[[,Hiking socks,Dress socks,Total,],[Sale price per unit,$,9.00,$.00,],[Less: , Variable cost per unit,6.00,2.754,,]]
them for $10. Monthly fixed costs are $10,000(for sales volumes between 0

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