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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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