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French Meditrainia ormal annual selling volume (units) 100,000 200,000 300,000 nit selling price $2.00 $1.40 $0.80 ariable cost per unit $1.20 $0.80 $0.50 Total fixed
French Meditrainia ormal annual selling volume (units) 100,000 200,000 300,000 nit selling price $2.00 $1.40 $0.80 ariable cost per unit $1.20 $0.80 $0.50 Total fixed costs for the entire company are $282,000 per year. All three products are sold in highly competitive markets around the globe, so the company is unable to aise its prices without losing unacceptable numbers of customers. The company has no inventories of work-in process or finished goods due to an extremely efficient just-in-time system. REQUIRED What is the company's overall break-even in total sales dollars? Of the total fixed costs of $282,000, $18,000 could be avoided if the French Carpet was dropped, $96,000 if the Meditrainian Carpet was dropped and $60,000 if the Welsh Carpet was dropped. The remaining fixed costs are common and are unavoidable unless the company went out of business. a. What is the break-even quantity and dollars of each product? b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Explain this result
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