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Gardner Furniture Company produces two kinds of chairs: an oak model and a chestnut wood model. The oak model sells for $76 and the chestnut
Gardner Furniture Company produces two kinds of chairs: an oak model and a chestnut wood model. The oak model sells for $76 and the chestnut wood model sells for $100. The variable expenses are as follows: Oak Chestnut Variable product cost per unit 30 35 variable selling and administrative cost per unit 6 5 Expected sales in units next year are: 4,000 oak chairs and 1,000 chestnut chairs. Fixed expenses are budgeted at $176,000 per year. The yearly break-even point in units are A/ units for oak chairs, and A units for chestnut chairs. If the sale mix will change to equal number of chairs sold, the operating income for 5,000 total units sold will be $
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