Question
In: Accounting
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
ekkarill92 answered 3 years agoRelated Solutions
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