Make sure you show your work.

A) A hardware store sells a variety of products but most can be lumped into three major categories. These categories will average gross profit levels as indicated next to the category description. These categories descriptions and associated Gross Profit Margins are as follows:

Description Gross Profit Margin

1) Hardware 30%

2) Home Furnishings 40%

3) Lawn and Garden Products 25%

The overall sales matrix of the company indicates the percentage of overall sales that each category represents. Those percentages are as follows:

Description Percentage of total sales

1) Hardware 40%

2) Home Furnishings 35%

3) Lawn and Garden Products 25%

If you are told that the fixed overhead (burden) for the company is $806,250 per year. What is the total break even point in total sales dollars for this company if the percentage of sales allocations and the applicable gross profit margins are consistent with the above matrix data?

B) In the example above, if the sales allocation percentages were changed as indicated below but the gross profit margins were the same and the fixed costs (burden) were the same what would the breakeven point be in total sales dollars?

Description Percentage of total sales

1) Hardware 20%

2) Home Furnishings 35%

3) Lawn and Garden Products 45%

C) If in B above (do not confuse with first problem) The fixed expenses (burden) were changed to $875,000 per year, what would the breakeven point be in total sales dollars?