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We make office chairs of two primary types: Type A: Sells for $150 VC: $100 Type B: Sells for $200 (deluxe model) VC: $100 Direct
We make office chairs of two primary types: Type A: Sells for $150 VC: $100 Type B: Sells for $200 (deluxe model) VC: $100 Direct labor is the same for each as they are assembled on the same assembly line- about $10/chair while Type B is more profitable, it only accounts for 20% of my sales. My fixed overhead runs about $600. What is break-even in units for each chair? What is break-even in revenues? We make basic home computers for the elderly with an email and internet function only. We sell them for $500 and they cost $320 in parts plus about $50 in direct labor. Supervisor costs are $200 per year. Other overhead costs are $1,000. Read this question carefully. What is break-even in units? What is break-even in revenues
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