Khloe’s Boys produces and sells three models of action figuresrepresenting the athletes and celebrities...

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Accounting

Khloe’s Boys produces and sells three models of action figuresrepresenting the athletes and celebrities Khloe Kardashian has beeninvolved with (let’s assume there are just three). In March 2018,Lamar Odom's sales were $100,000 and its variable expenses were$58,000. French Montana's sales were $150,000 and its variableexpenses were $102,000. Tristan Thompson’s sales were $250,000 andits variable expenses were $130,000. The company's fixed expenseswere $96,600

a. Determine the overall break-even point for the company insales dollars. (4 points)

b. Determine the break-even point for each of the Lamar Odom,French Montana, and Tristan Thompson in total sales dollars. Roundto the nearest cent. (9 points)

c. Determine the degree of operating leverage for Khloe’s Boys.(3 points)
d. Sales for Tristan Thompson were undoubtedly high in March 2018because he was Khloe’s current man and they had a child on the way.Unfortunately, the news that Tristan cheated on Khloe broke soonthereafter, and in April 2018, sales of the Tristan Thompsondropped dramatically. The sales of the Lamar Odom and FrenchMontana remained fairly stable. What impact would this have onKhloe’s break even point and net income for the month of April 2018and why? (3 points)

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In: AccountingKhloe’s Boys produces and sells three models of action figuresrepresenting the athletes and celebrities Khloe...Khloe’s Boys produces and sells three models of action figuresrepresenting the athletes and celebrities Khloe Kardashian has beeninvolved with (let’s assume there are just three). In March 2018,Lamar Odom's sales were $100,000 and its variable expenses were$58,000. French Montana's sales were $150,000 and its variableexpenses were $102,000. Tristan Thompson’s sales were $250,000 andits variable expenses were $130,000. The company's fixed expenseswere $96,600a. Determine the overall break-even point for the company insales dollars. (4 points)b. Determine the break-even point for each of the Lamar Odom,French Montana, and Tristan Thompson in total sales dollars. Roundto the nearest cent. (9 points)c. Determine the degree of operating leverage for Khloe’s Boys.(3 points)d. Sales for Tristan Thompson were undoubtedly high in March 2018because he was Khloe’s current man and they had a child on the way.Unfortunately, the news that Tristan cheated on Khloe broke soonthereafter, and in April 2018, sales of the Tristan Thompsondropped dramatically. The sales of the Lamar Odom and FrenchMontana remained fairly stable. What impact would this have onKhloe’s break even point and net income for the month of April 2018and why? (3 points)

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