Sports Nation Sells Two Types of Soccer Jerseys: Deluxe and Superior.The

question 97

Essay

Sports Nation sells two types of soccer jerseys: Deluxe and Superior.The following table shows the sales price and unit variable costs for each jersey.Sports Nation incurs $200,000 a year in fixed costs.Assume the store has a sales mix of three Deluxe jerseys for every Superior jersey sold. Required:
a.How many jerseys of each type will be sold at the breakeven point?
b.What amount of revenue would need to be generated by each type of jersey for the company to earn $25,000 in operating income?

---

Definitions:

Orlon

A synthetic fiber known for its strength and resistance to weathering, often used in clothing and home furnishings.

Kevlar

A strong synthetic fiber known for its high tensile strength and thermal stability, used in body armor and various applications.

Poly(isobutylene)

Poly(isobutylene) is a polymer made from the monomer isobutylene, used in the manufacture of inner tubes, adhesives, and sealants.

Cationic Polymerization

A type of chain growth polymerization where the active center of the polymer is a cation.