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Thorpe's Swimwear Company Sells Swimwear for Men and Boys Required:
A

Question 196

Essay

Thorpe's Swimwear 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 Selling Price $24.00 Variable Cost $20.40 Variable Cost $16.80 Fixed costs are $38400\begin{array}{l}\begin{array}{llll} & \text { Men's } & & \text { Boys }^{\prime} \\\text { Selling Price } & \$ 28.80 & \text { Selling Price } & \$ 24.00 \\\text { Variable Cost } & \$ 20.40 & \text { Variable Cost } & \$ 16.80\end{array}\\\text { Fixed costs are } \$ 38400 \text {. }\end{array}
Required:
a.What is the break-even point in units for each type of swimwear,assuming the sales mix is 2:1 in favour of men's swimwear?
b.What is the operating profit,assuming the sales mix is 2:1 in favour of men's swimwear,and sales total 9000 swimwear?
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Correct Answer:

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a.N = break-even in boys' swimwear 2N = ...

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