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 $300 and $175 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $400 and $190 respectively. The variable selling expense per unit for models A and B are $50 per unit and $60 per unit respectively. Assume that total fixed expenses are $198,000 per month and the expected monthly sales for models A and B are 9,000 units and 2,250 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one:
a. 328,290
b. 487,385
c. 446,197
d. None of the given answers
e. 704,000
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