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4. Nigel Planer Inc. makes premium garden gnome figurines. The company makes leprechauns hobs, and gnomids. The sales and cost data is as follows: Variable
4. Nigel Planer Inc. makes premium garden gnome figurines. The company makes leprechauns hobs, and gnomids. The sales and cost data is as follows: Variable Cost per Unit Selling Price per Unit Leprechauns $30 $70 Hobs $25 $60 Gnomids $40 $90 Fixed costs total $480,000 per year. The sales mix is constant, with the proportions as follows, for every 10 leprechauns sold, there are 6 hobs sold and 14 gnomids sold. a. Find the number of leprechauns, hobs, and gnomids the company must make and sell to break even. b. The CFO of Nigel Planer Inc., Ade Edmondson, says, "We had an operating income of $70,200 last year." How many leprechauns, hobs, and gnomids did the company make and sell to achieve this figure
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