Bob's Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows:
Required:
a. What is the breakeven point in units for each type of shirt, assuming the sales mix is 2:1 in favor of men's shirts?
b. What is the operating income, assuming the sales mix is 2:1 in favor of men's shirts, and sales total 9,000 shirts?

Question

Bob's Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows:
   Required:
a. What is the breakeven point in units for each type of shirt, assuming the sales mix is 2:1 in favor of men's shirts?
b. What is the operating income, assuming the sales mix is 2:1 in favor of men's shirts, and sales total 9,000 shirts?

Quizplus · Accepted Answer

The Answer of Bob's Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows:
   Required:
a. What is the breakeven point in units for each type of shirt, assuming the sales mix is 2:1 in favor of men's shirts?
b. What is the operating income, assuming the sales mix is 2:1 in favor of men's shirts, and sales total 9,000 shirts?

Bob's Textile Company Sells Shirts for Men and Boys