How many jerseys of each type will be sold at the breakeven point? (Round answers to O decimal places, e.g. 25,000. Deluxe Superior

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How many jerseys of each type will be sold at the breakeven point? (Round answers to O decimal places, e.g. 25,000.)
Deluxe
Superior
Transcribed Image Text:How many jerseys of each type will be sold at the breakeven point? (Round answers to O decimal places, e.g. 25,000.) Deluxe Superior
Sunland Company sells two types of soccer jerseys: Deluxe and Superior. The following table shows the sales price and unit variable
costs for each jersey. Sunland Company incurs 232,000 a year in fixed costs. Assume the store has a sales mix of three Deluxe jerseys
for every Superior jersey sold.
Туре
Deluxe
Superior
Sales Price
$14.00
22.00
Variable Cost
$10.00
14.00
Contribution Margin
$4.00
8.00
Transcribed Image Text:Sunland Company sells two types of soccer jerseys: Deluxe and Superior. The following table shows the sales price and unit variable costs for each jersey. Sunland Company incurs 232,000 a year in fixed costs. Assume the store has a sales mix of three Deluxe jerseys for every Superior jersey sold. Туре Deluxe Superior Sales Price $14.00 22.00 Variable Cost $10.00 14.00 Contribution Margin $4.00 8.00
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