Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sara produces two types of tables. Marble and wooden. Marble tables: SP=$500, VC=$200 Wooden tables: SP=$300, VC=$100 HE sells 2 marble tables for each 3
Sara produces two types of tables. Marble and wooden.
Marble tables: SP=$500, VC=$200
Wooden tables: SP=$300, VC=$100
HE sells 2 marble tables for each 3 wooden tables.
Fixed costs=$1,500,000
a. What is the B/E point in units and dollars for each type of tables?
b. Nichan is considering adding some features on the tables. This will increase fixed costs by $200,000 and decrease variable cost of marble table by $20 and wooden table by $10. Assume the same sales mix, how many of each type does he need to sell in order to reach B/E?
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