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Let X = a package of grade 1 and grade 2 cabinets S1=sales mix grade 1 and S2 sales mix grade 2 sales=S1*X*(price grade 1)+S2*X*(price
Let X = a package of grade 1 and grade 2 cabinets | |||||||
S1=sales mix grade 1 and S2 sales mix grade 2 | |||||||
sales=S1*X*(price grade 1)+S2*X*(price grade 2) | |||||||
Package Units | Units Grade 1 | Units Grade 2 | |||||
Initial Problem Data | |||||||
Sales | Value | Sales Mix | Price Per Unit | Variable Costs Per Unit | Fixed Costs | ||
First 5 months | $600,000 | Grade 1 | 0.3 | $3,400 | $2,686 | $95,000 | |
Full Year | $1,600,000 | Grade 2 | 0.7 | $1,600 | $1,328 | $95,000 | |
Common Fixed Costs | |||||||
$35,000 |
|
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