Fashions produces hand-stitched dusters and riding coats

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Reference no: EM131400003

Darcy Fashions produces hand-stitched dusters and riding coats. Their fixed costs are $2,300 per month. The variable cost per coat in materials and labor is $65. They sell the coats for $120 each. Find the break-even point for how many coats they must sell in a week. How much profit do they make in a month if they sell 40 coats per week? A more skilled workforce to do the stitching would increase the variable cost to $95 per coat, but would increase quality and allow the coats to sell for $210 each. What is the new break-even point for the week? How much monthly profit would they now make selling 40 coats per week? How few coats could they sell per week and still match the profit from the original situation?

Reference no: EM131400003

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