Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cheryl Montoya picked up the phone and called her boss. Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: 'Wes. I'm not sure
Cheryl Montoya picked up the phone and called her boss. Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: 'Wes. I'm not sure how to go about answering the questions 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 tomorrow 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 conceming these products appear below: Total fixed expenses are $258,000 per year. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable numbers of customers. The company has an extremely effective lean production system, so there are no beginning or ending work in process or finished goods inventories. Required: What is the company's over-all break-even point in dollar sales? (Round CM ratio to 4 decimal places and final answer to the nearest whole dollar.)
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