Question
Make It Shin can produce two types of lamps, the Table Top Model and the Floor model. The data on the two lamp models are
Make It Shin can produce two types of lamps, the Table Top Model and the Floor model. The data on the two lamp models are as follows:
| Table Top | Floor |
| |||||||
Sales volume in units |
|
| 500 |
|
|
| 400 |
| ||
Unit sales price |
| $ | 300 |
|
| $ | 400 |
| ||
Unit variable cost |
|
| 200 |
|
|
| 240 |
| ||
Unit contribution margin |
| $ | 100 |
|
| $ | 160 |
| ||
It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $90,000. Demand is high enough for either product to keep the plant operating at maximum capacity.
Assuming that the sales mix remains constant, what is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answer up to the nearest whole number.)
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