A firm is selling two productschairs and bar stoolseach at $55 per unit. Chairs have a variable
Question:
A firm is selling two productschairs and bar stoolseach at $55 per unit. Chairs have a variable cost of $30, and bar stools $20. Fixed cost for the firm is $22,000.
a. If the sales mix is 1:1 (one chair sold for every bar stool sold), what is the break-even point in dollars of sales? In units of chairs and bar stools? (Round your unit answers to a whole number before calculating the breakeven point and round the break-even point to the nearest whole number.)
b. If the sales mix changes to 1:4 (one chair sold for every four bar stools sold), what is the break-even point in dollars of sales? In units of chairs and bar stools? (Round your unit answers to a whole number before calculating the breakeven point and round the break-even point to the nearest whole number.)
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase