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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
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: O a. 487,385 O b. 704,000 O c. 446,197 O d. 328,290 O e. None of the given answers
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