1. K-Too Everwear Corporation manfactures two styles of mountain climbing shoes for women: Regular and fashion styles. A pair of regular style shoes sells for $135, while the fashion style shoes sell for $160 per pair. The variable cost per pair for regular shoes is $38.94, and that for fashion style shoes is $41.5. K-Too Everwear has fixed costs of $1,800,000. K-Too Everwear has the sales mix of 70% and 30% for regular- and fashion-style shoes, respectively.
What is K-Too Everwear's weighted average contribution margin ratio?
A) 71.16%
B) 69.58%
C) 74.06%
D) 72.03%
2. Please refer to the data in Question 12. What is K-Too Everwear's break-even sales in dollars?
A) $1,749,328
B) $749,712
C) $1,000,540
D) $2,499,041