Question
Please provide your solution as well Creative Star Corporation produces three lines of desks from wood: Classic, Royal, and Standard. Cost and revenue data pertaining
Please provide your solution as well
Creative Star Corporation produces three lines of desks from wood: Classic, Royal, and Standard. Cost and revenue data pertaining to each product are shown below:
Classic | Royal | Standard | |
Selling price | $ 159 | $ 229 | $ 79 |
Total variable costs | $ 67 | $ 157 | $ 57 |
Classic desk requires five square yards of wood, Royal requires ten square yards and Standard requires three square yards. High demand for each product line far exceeds the company's production capacity.
If Creative Star Corporation has only 170,000 square yards of woods available, what is the highest total amount of fixed cost can the company still incur and still break even ?
A. 5,213,333
B. 1,246,667
C. 1,224,000
D. 3,128,000
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