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Fitch Ltd. produces lighting fixtures. For the upcoming period, the company has provided the following budget information for two of its product lines: Sales
Fitch Ltd. produces lighting fixtures. For the upcoming period, the company has provided the following budget information for two of its product lines: Sales (units) Sales Variable costs Contribution margin Deduct: product line fixed costs Product line operating profit (loss) Table lamps Floor lamps 100,000 $ 6,100,000 2,600,000 500,000 $ 52,000,000 22,500,000 3,500,000 29,500,000 2,700,000 28,200,000 $ 800,000 $ 1,300,000 Total 600,000 $ 58,100,000 25,100,000 33,000,000 30,900,000 $2,100,000 Assuming the sales mix remains as budgeted, how many table lamps must be part of the sales mix for Fitch to break even?
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