Mel's male accessories sells wallets and money clips. Historically the firms sales have averaged three wallets...

Mel's male accessories sells wallets and money clips. Historically the firms sales have averaged three wallets for every money clip. Each wallet has an R80 contribution margin and each money clip has a R60 contribution margin. Mel's incurs fixed costs in the amount of R180000. The selling prices of wallets and money clips, respectively, are R200 and R150. The firms tax rate is 40%.

Required :
a. How much revenue is needed to break even and how many wallets and money clips does this present.
b. How much revenue is needed to earn an operating income of R150000?

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ekkarill92 answered 1 year ago

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