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Accounting

Athletic 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                                        $47.70                     $84.00
Variable expenses per racket:
Production                                                           $21.40                      $28.10
Selling                                                                 $ 2.45                        $ 5.50

Sales in units over the past two months have been as follows:

Standard Deluxe

April 5000 3000

May 4000 3500

All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs:

Per month

Fixed production cost $ 107,100

Advertising expense $ 101,000

Administrative salaries $ 50,000

Total $ 258,000

Compute the Racket Division's break-even point in dollar sales for April.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9957458

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