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19. Everest, Inc, currently produces and sells three products (Cars, Trucks, and Vans). Data concerning those products for the most recent month appear below: Trucks
19. Everest, Inc, currently produces and sells three products (Cars, Trucks, and Vans). Data concerning those products for the most recent month appear below: Trucks Vans Sales $2,000,000 $3,000,000 $5,000,000 Variable costs $1,400,000 $1,500,000 $4,600,000 Cars Monthly fixed expenses for the company are $1,750,000. Assuming the sales mix stays consistent, how many sales (dollars) are needed in order to reach a desired profit of $4,000,000? 20. Using the information in #19 above, Everest's senior management team recognizes that margins vary significantly across each product. The team is considering eliminating the product line with the lowest Contribution Margin ratio. If that product line is eliminated, the team estimates that future sales would be split evenly between the two remaining product lines. If this change takes place, the required sales to break even each month will decrease. By what percentage
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