Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

OM operations management

Authors: David Alan Collier, James R. Evans

5th edition

1285451376, 978-1285451374

More Books

Students also viewed these General Management questions

Question

By definition, how is a sample related to a population?

Answered: 1 week ago

Question

12. What is the basis for setting tolerance?

Answered: 1 week ago