Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 7 - 1 2 ( Algo ) A firm is selling two products - chairs and bar stools - each at $ 6 5

Problem 7-12(Algo)
A firm is selling two products-chairs and bar stools-each at $65 per unit. Chairs have a variable cost of $30, and bar stools $25. The fixed cost for the firm is $20,000.
a. If the sales mix is 1:1(one chair sold for every bar stool sold), what is the break-even point in dollars of sales? In units of chairs and bar stools?
Note: Round your answers to a whole number before calculating the breali even point and round the break-even point to the nearest whole number.
\table[[Break-even point],[Number of chairs],[Number of bar stools]]
b. If the sales mix changes to 1:4(one chair sold for every four bar stools sold), what is the break-even point in dollars of sales? In units of chairs and bar stools?
Note: Round your answers to a whole number before calculating the break-even point and round the break-even point to the nearest whole number.
\table[[Break-even point],[Number of chairs],[Number of bar stools]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Large Scale Complex IT Systems Development Operation And Management

Authors: Radu Calinescu; ‎David Garlan

1st Edition

364234058X, 9783642340581

More Books

Students also viewed these General Management questions

Question

x 4 Sketch the graph of the given inequality.

Answered: 1 week ago