For part 2 Required :a) What is the breakeven point in units for each type...
90.2K
Verified Solution
Link Copied!
Question
Accounting
For part 2 Required :a) What is the breakeven point in units for each type of skirt?(6 marks)
Cherry Company intends to stop marketing its outdated locket line, but management wants some additional data prepared before a nal decision is made. The following data relates to the locket line: Sales have been dropping and the sales for the year 2019 are - Required: (a) Using the contribution margin approach, calculate the units of lockets needed to sell to break even (h) Using the contribution margin approach, calculate the sales dollars needed to earn to break-even. (c) Assuming Cherry Company need to earn a prot of S 1 50,000 for its locket line, calculate the units of lockets that need to be sold (show the equation method in your calculation) (d) Using the equation method, assuming variable costs increased by $10 per locket, how many lockets must be sold in a year to earn prots amounting to $50,000?. Part 2 ( 3 marks) ( 2 marks} (2 marks} ( 3 marks} Bellaboo Clothing Design sells skirts for girls and women. The average selling price and the variable cost for each product are as follows: Mm QED Variable Costs -E- The xed cost are $38,400. The sales mix of girls' to women's skirts is 35% f 65%. Which means 35% of the skirts sold are girls' skirts and 65% are women's skirts
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!