Q1. Calculate Rogue Outdoor's break-even point in units and dollars for selling hiking shoes if:
- Average per unit variable cost (Wholesale price Rogue pays for hiking shoes): $50
- Total fixed costs assigned to hiking shoes: $36,000
- Average per unit revenue (price) of hiking shoes: $100
Q2. Calculate the maximum wholesale price that the Rogue Outdoor can afford in order to earn a 30% profit margin on the sale of its hiking shoes if:
- $100 MSRP
- Using the variable and fixed costs in the previous problem
- (Note: the simple formula in the textbook fails to take into account the fixed costs per unit)