What is the breakeven point in total units

Assignment Help Financial Management

Reference no: EM131878435

The Chippewa Sports is a sports clothing retail business. The company sells t-shirts and sweatshirts with local sporting teams logos printed on the merchandise. Each t-shirt sells for $20 and the company spends $5 to produce each t-shirt. Each sweatshirt sells for $30 and costs the company $10 in variable costs to produce the product. The company’s sales are made up of 62% of t-shirt sales and 38% of sweatshirt sales. The company’s owners have determined that the business has $43,940 in fixed costs.

a) What is the breakeven point in total units (t-shirts and sweatshirts)? ___________________

b) At the breakeven point, how many t-shirts would the company need to sell (knowing that the product mix will remain the same)? ___________________

c) At the breakeven point, how many sweatshirts would the company need to sell (knowing that the product mix will remain the same)?

Reference no: EM131878435

Questions Cloud

Conveyor belt systems-what is the eac for each project : Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. What is the EAC for each project?

Calculate npv for both conveyor belt systems : Calculate the NPV for both conveyor belt systems.

What is the current price of the stock : The process, inc., is a fast growing technology company. If your required rate of return on such stocks is 20%, what is the current price of the stock?

Define each of the term sabanes oxeley Act-Intrinsic value : Define each of the following term sabanes oxeley Act, Intrinsic value; market price, stockholder wealth maximization, Business ethics.

What is the breakeven point in total units : What is the breakeven point in total units (t-shirts and sweatshirts)? At the breakeven point, how many t-shirts would the company need to sell.

Future including cash dividend and share dividend policies : Deloraine is considering different dividend policies for the future including cash dividend and share dividend policies.

Explain breakeven point analysis : Explain breakeven point analysis and how is it used in business?

Calculate the increase in operating net income : Calculate the company’s operating net income: If the firm increase sales by 1,000 units, calculate the increase in operating net income;

What is the net income at the current level of sales : Melloroid Company currently has sales of $680,000. Variable expenses are 35% of sales. what is the net income at the current level of sales?

User Account

All Pages