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1. The Picture Company makes two picture frames: metal and wood. The current financial information is as follows: Units Sales Variable costs Fixed costs Net
1. The Picture Company makes two picture frames: metal and wood. The current financial information is as follows: Units Sales Variable costs Fixed costs Net income Profit per unit Metal 5,000 $60,000 35,000 10.000 $15.000 $3.00 Wood 3,000 $25,000 7,500 10,000 $7.500 $2.50 Questions: 1) Assume there was unlimited demand for either of the products, which product should the Picture Company sell to earn the maximum net income. 2) Why is it important to know the break-even
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