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We make three chandelier types: Bronze, Silver, and Gold. Bronze Silver Gold Selling price 300 450 1,000 Variable cost 120 150 600 Sales ratio 25%
We make three chandelier types: Bronze, Silver, and Gold. | |||||||
Bronze | Silver | Gold | |||||
Selling price | 300 | 450 | 1,000 | ||||
Variable cost | 120 | 150 | 600 | ||||
Sales ratio | 25% | 65% | 10% | ||||
Total fixed costs | 500,000 | ||||||
How many chandeliers must we sell to earn a profit of $1,000,000, and how many will be of each type? |
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