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Bob's Textile Company Sells Shirts for Men and Boys

question 11

Essay

Bob's Textile Company sells shirts for men and boys.The average selling price and variable cost for each product are as follows:
Men's Boys
Selling price $28.80 $24.00
Variable cost $20.42 $16.80
Total fixed costs $38,400
Required:
Assume the sales mix is 2 men's shirts for each boy's shirt:
a. What is the weighted revenue per unit of composite average product,the weighted average variable cost,and the weighted contribution margin per unit of average product?
b. What is the break-even point in units for each type of shirt?
c. What is the operating income,assuming sales total 9,000 shirts?


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