Bluebird Sports, Inc., produces high quality sports equipment. The company's Racket Division manufactures two tennis...
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Bluebird 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 $46.00 $84.00
Variable expenses per racket:
Production $13.80 $50.40
Sales commission 5% 5% of price
Sales in units in the second quarter have been as follows:
Standard Deluxe
April 9,000 3,000
May 4,500 5,500
June 3,500 3,800
All sales are made through the companys own retail outlets. The Racket Division has the following quarterly fixed costs:
Standard Deluxe
Total fixed costs $285,000 $285,000
Keeping the sales mix unchanged, which amount is closest to the Break-Even dollar sales of the Racket Division for April?
The answer is $354,156.
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