Minot Furniture sells two models of desks to retail customers-basic and adjustable (for those who want the

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Minot Furniture sells two models of desks to retail customers-basic and adjustable (for those who want the option to stand at their desk). Basic desks sell for $600 each and adjustable desks sell for $900 each. The variable cost of a basic desk is $360 and that of an adjustable desk is $450. Annual fixed costs at Minot Furniture are $243,000. The break-even point at the current sales mix is 750 total units.

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How many basic desks and how many adjustable desks are sold at the break-even level? In other words, what is the assumed sales mix?

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Fundamentals of Cost Accounting

ISBN: 978-1259565403

5th edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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