Question
Office Supply store costs are expressed as a function of the unit sales of its two products: office chairs and task desks. Assume fixed costs
Office Supply store costs are expressed as a function of the unit sales of its two products: office chairs and task desks. Assume fixed costs are $9,000 per month and the variable costs are $60 per office chair and $125 per task desk. What are Office Supplys estimated costs for the month if 100 office chairs and 52 task desks are sold?
| A. | $25,000 |
| B. | $20,500 |
| C. | $21,500 |
| D. | $22,000 |
The FIFA sports store sells 1 World Cup soccer ball for every 4 regular style balls.
| World Cup Soccer Ball | Regular Style Soccer Ball |
Sale price per ball | $20 | $10 |
Variable cost per ball | $10 | $ 5 |
Total Fixed Cost for FIFA sports $12,000. Assuming a constant sales mix. The break-even unit sales volume is:
| A. | 2,000 |
| B. | 7,200 |
| C. | 9,023 |
| D. | 3,840 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started