Question
XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model
XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $360 and $210 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $480 and $228 respectively. The variable selling expense per unit for models A and B are $60 per unit and $72 per unit respectively. Assume that total fixed expenses are $237,600 per month and the expected monthly sales for models A and B are 10,800 units and 2,700 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one:
a. 393,948
b. 535,437
c. 844,800
d. 584,862
e. None of the given answers
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