Question
Sweet Baby Inc. produces two types of children's specialty bed products - Baby Cribs and Toddler Beds. The following information is available related to each
Sweet Baby Inc. produces two types of children's specialty bed products - Baby Cribs and Toddler Beds. The following information is available related to each product:
| Baby Crib |
| Toddler Bed |
Sales price per unit | $600 |
| $500 |
Variable costs per unit | 150 |
| 200 |
Baby cribs account for 60% of total product sales and toddler beds account for the rest. Sweet Baby's total fixed costs are $1,170,000.
Required:
A. | How many total children's bed products does the company need to produce and sell in order to break even? |
|
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B. | How many baby cribs need to be sold in order to break even? |
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