7.

Salvador Company sells two products, as follows:

	Selling Price per Unit	Variable Expense per Unit
Product Y	$300	$150
Product Z	700	300

Fixed expenses total $500,000 annually. The expected sales mix in units is 60% for Product Y and 40% for Product Z.

How much is Salvador Company's expected break-even sales in dollars?

A)	$920,000
B)	$414,000
C)	$900,000
D)	$555,882

8. When management directs attention only to those activities not proceeding according to plan, they are engaging in

A)	activity-based management.
B)	organization-based management.
C)	Management by exception.
D)	just-in-time management.