Answer Happy

s) 6. Jonathan Sports, Inc., produces high-quality sports equipment. The company's Racket Division manufactures three tennis racquets the Standard, the Deluxe, and the Pro that are widely used in amateur play. Selected information on the racquets is given below: Deluxe Pro Standard $40.00 Selling price per racquet $60.00 $90.00 Variable expenses per racquet: Production $22.00 $27.00 $31.50 Selling (5% of selling price) $ 2.00 $ 3.00 $ 4.50 All sales are made through the company's own retail outlets. The Racquet Division has the following monthly fixed costs: Fixed production costs $150,000 100,000 Advertising expense Administrative salaries Total 200,000 $450.000 Sales of the three racquets are in the proportion of 6 to 2 to 2, Standard, Deluxe, and Pro, respectively. Required: a) Determine the breakeven point in units for each of the three racquets. b) Determine the operating income if a total of 30,000 racquets are sold in the sales mix proportion.