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Category > Business & Finance Posted 13 May 2017 My Price 8.00

Suppose that in the coming year Switzer plans

Refer to Exercise 11-8. Suppose that in the coming year, Switzer plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 20,000 mats can be sold at a price of $18 and variable cost per unit of $13. Fixed costs must be increased by $48,350 (making total fixed costs $118,350). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same.

 Required

1.    What is the sales mix of videos, equipment sets, and yoga mats?

2.    Compute the break-even quantity of each product.

3.    Prepare a budgeted income statement for Switzer for the coming year. What is the overall contribution margin ratio? The overall break-even sales revenue?

Answers

Alpha Geek
(8)
Status NEW Posted 13 May 2017 05:05 AM My Price 8.00

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file 1494654623-1404281_1_636301915729677227_1404281.xlsx preview (229 words )
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