Taylor's Tailors sells shirts for men and boys. The average selling price and variable cost for...

 

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Taylor's Tailors sells shirts for men and boys. The average selling price and variable cost for each product are as follows: Men's Boys' Selling Price Variable Cost Selling Price Variable Cost Fixed costs are $35,200. $25.00 $15.40 $24.00 $16.00 Required: a. What is the breakeven point in units for each type of shirt, assuming the sales mix is 1:1? Break even point for each type of shirt = b. What is the operating leverage, assuming the sales mix is 2:1 in favor of men's shirts, and sales total 5,000 shirts? Operating leverage = Taylor's Tailors sells shirts for men and boys. The average selling price and variable cost for each product are as follows: Men's Boys' Selling Price Variable Cost Selling Price Variable Cost Fixed costs are $35,200. $25.00 $15.40 $24.00 $16.00 Required: a. What is the breakeven point in units for each type of shirt, assuming the sales mix is 1:1? Break even point for each type of shirt = b. What is the operating leverage, assuming the sales mix is 2:1 in favor of men's shirts, and sales total 5,000 shirts? Operating leverage =

Answer rating: 100% (QA)

a To calculate the breakeven point in units for each type of shirt we can use the following formula ... View the full answer