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Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows:
Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: | |||||||||
Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $258,000 per year. | |||||||||
What are total variable costs for Morris with their current product mix? | |||||||||
Calculate the number of units of each product that will need to be sold in order for Morris to break even. | |||||||||
What is their break-even point in sales dollars? | |||||||||
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