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CASE 5-32 Break-Even Analysis for Individual Products in a Multiproduct Company LC5-5, L05-9 Cheryl Montoya picked up the phone and called her boss, Wes Chan,

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CASE 5-32 Break-Even Analysis for Individual Products in a Multiproduct Company LC5-5, L05-9 Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of market- ing at Piedmont Fasteners Corporation: "Wes, I'm not sure how to go about answering the ques- tions that came up at the meeting with the president yesterday. "What's the problem?" **The president wanted to know the break-even point for each of the company's products, but I am having trouble figuring them out." I'm sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomor- row morning at 8:00 sharp in time for the follow-up meeting at 9:00." Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. Data concerning these products appear below: Velcro Metal Nylon Annual sales volume... Unit selling price Variable expense per unit 100,000 $1.65 $1.25 200,000 $1.50 $0.70 400,000 $0.85 $0.25 Total fixed expenses are $400,000 per year

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