Question
Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows Enlighter Foglighter Sales
Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows
Enlighter Foglighter
Sales volume in units 600 500
Unit Sales Price 300 400
Unit variable cost 200 240
Unit contribution margin 100 160
It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $140,000. Demand is high enough for either product to keep the plant operating at maximum capacity.
Assuming that sales mix in terms ofdollarsremains constant, what is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answerupto the nearest whole number.)
A. 380,022
B. 441,770
C. 253,622
D. 1,080,924
E. 423,992
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