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Georgia Favorites Company produces toy alligators and toy dolphins. Fixed costs are $950,400 per year. Sales revenue and variable costs per unit are as
Georgia Favorites Company produces toy alligators and toy dolphins. Fixed costs are $950,400 per year. Sales revenue and variable costs per unit are as follow: Alligators Dolphins Sales price $ Variable costs 16 $ 29 11 12 Requirements (a) Suppose the company currently sells 162,000 alligators per year and 63,000 dolphins per year. Assuming the sales mix stays constant, how many alligators and dolphins must the company sell to break even per year? (b) Suppose the company currently sells 63,000 alligators per year and 162,000 dolphins per year. Assuming the sales mix stays constant, how many alligators and dolphins must the company sell to break even per year? (c) Explain why the total number of toys needed to break even in part a is the same as or different from the number in part b.
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