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Athletic Sports, Inc., produces high-quality sports equipment. The company's Racket Division manufactures two tennis rackets-the Standard and the Deluxe-that are widely used in amateur play. Selected information on the rackets is given below:
Standard Deluxe
Selling price per racket $47.70 $84.00 Variable expenses per racket: Production $21.40 $28.10 Selling $ 2.45 $ 5.50
Sales in units over the past two months have been as follows:
April 5000 3000
May 4000 3500
All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs:
Per month
Fixed production cost $ 107,100
Advertising expense $ 101,000
Administrative salaries $ 50,000
Total $ 258,000
Compute the Racket Division's break-even point in dollar sales for April.
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