Oxford Street Apparel produces and sell two lines of business suits; the European and the Legacy....

Oxford Street Apparel produces and sell two lines of business suits; the European and the Legacy. The following monthly data is provided in the table below.

In addition the firm's budgeted net income is $45,000 per month. Calculate the firm's fixed cost and select the answer below that best matches yours.

	European	Legacy
Estimated unit sales per month	500	1000
Selling price	$200	$175
Variable manufacturing costs	$110	$100
Variable selling and administrative costs	$10	$10

a. $0. The firm has no fixed costs

b. $40,000

c. $60,000

d. $50,000

e. $75,000

Continuing with Oxford Street Apparel, compute the firms profit assuming that 1,500 units are sold in a 1:1 sales mix (HINT: 750 European, and 750 Legacy suits are sold)

a. $57,200

b. $60,000

c. $108,750

d. $48,750

Solutions

Expert Solution

ekkarill92 answered 2 years ago

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