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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

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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 $180 and $105 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $240 and $114 respectively. The variable selling expense per unit for models A and B are $30 per unit and $36 per unit respectively. Assume that total fixed expenses are $118,800 per month and the expected monthly sales for models A and B are 5,400 units and 1,350 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one: a. 196,974 b. 267,718 c. 292,431 d. None of the given answers e. 422,400

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