Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows: Enlightner Foglighter Sales

Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows:

Enlightner Foglighter
Sales volume in units 590 490
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 $135,000. Demand is high enough for either product to keep the plant operating at maximum capacity.

Assuming that sales mix in terms of dollars remains constant, what is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answer up to the nearest whole number.)

Multiple Choice

  • $366,450.

  • $428,198.

  • $240,050.

  • $1,067,352.

  • $410,420.

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_2

Step: 3

blur-text-image_3

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

Measuring ROI In Learning And Development Case Studies From Global Organizations

Authors: Patricia Pulliam Phillips, Jack J. Phillips

1st Edition

1562867997, 9781562867997

More Books

Students also viewed these Accounting questions

Question

What do you like to do in your spare time?

Answered: 1 week ago