Susan Lo called her boss, Phil Takata, the vice president of sales at Jewel Clasps Corporation: Phil, Im not sure how to go about answering the questions that came up at the meeting with the CEO yesterday.

"What's the challenge?"

The CEO wanted to know the break-even point for each of the companys products, but I am having trouble figuring them out.

Im sure you can handle it, Susan. And, by the way, I need your analysis on my desk tonight before you leave in time for my follow-up meeting at 8:00 a.m.

Jewel Clasps Corporation makes three different types of jewelry clasps in its manufacturing facility in North Carolina. Data concerning these products appear below:

Gold Silver Copper Normal annual sales volume 104,000 205,000 404,000 Unit selling price $1.30 $1.50 $1.05 Variable expense per unit $.91 $.60 $0.42

Total fixed expenses are $432,000 per year.

All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable numbers of customers.

The company has an extremely effective lean production system, so there are no beginning or ending work in process or finished goods inventories.

**TIP: To answer the questions below, it will be most helpful if you prepare segmented income statements as illustrated in your textbook (~page 263)

Required: 1.

What is the companys over-all break-even point in dollar sales?