Question: Only question 2 please Break-Even Point in Units for a Multiple-Product Firm Suppose that Chillmax Company now sells both pairs of shoes and fabric carryalls.
Only question 2 please
Break-Even Point in Units for a Multiple-Product Firm Suppose that Chillmax Company now sells both pairs of shoes and fabric carryalls. The pairs of shoes are priced at $60 and have variable costs of $21 each. The carryalls are priced at $36 and have variable costs of $9 each. Total fixed cost for Chillmax as a whole equals $91,500 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Chillmax expects to sell 3,500 pairs of shoes and 875 carryalls. Required: 1. Form a package of shoes and carryalls based on the sales mix expected for the coming year. Package Unit Unit Unit Variable Contribution Sales Contribution Product Price Cost Margin Mix Margin Shoes 60 21 39 156 Carryall 36 9 27 27 183 Package total 2. Calculate the break-even point in units for pairs of shoes and for carryalls. Break-Even Pairs of Shoes 2,346.15 X units Break-Even Carryalls 3,388.88 X units = X 1 =
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
