Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

A business sells 3 products with the following information. They sell chairs for $55 that have a variable cost of $20 per unit. The business

image text in transcribed

A business sells 3 products with the following information. They sell chairs for $55 that have a variable cost of $20 per unit. The business sells tables for $145 and the variable cost is $75 per unit. The third product sold is stools for $35, and the variable cost is $9. The sales mix for the products is 8 chairs for every 2 tables and every 1 stool. The fixed costs are $2000. Complete the break even analysis below. Enter all monetary answers to 2 decimal places and any answers related to units in whole numbers. Please do not use any dollars or commas. For example, if your answer is $35, please enter "35.00". If your answer is 2,250.45 units, please enter "2251". This is an auto-marked question and any extra decimals, spaces or symbols will result in no marks being awarded if your number is correct. Product Contribution margin Weighted contribution Number of units to margin break even 35.00 25.45 58.00 Chairs 70.00 12.73 50.00 Tables 26.00 2.36 77.00 Stools

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions