Question
(BONUS) Jolie Corporation manufactures and sells specialty climbing towers for cats. The company has two product lines--the Standard tower and the Luxury Condo. The Standard
(BONUS) Jolie Corporation manufactures and sells specialty climbing towers for cats. The company has two product lines--the Standard tower and the Luxury Condo. The Standard Tower retails for $55 and has a contribution margin of $25. The Luxury Condo retails for $333 and has a contribution margin of $140.
Of all the units sold for Jolie Corporation, 70% are Standard Towers and 30% are Luxury Condos. The unit mix will remain constant and is not based on total sales dollars. If the corporation has total fixed costs of $257,958, at what level of sales (in units) would Jolie Corporation break-even? Round your answer UP to the next whole number.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started