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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 $420 and $245 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $560 and $266 respectively. The variable selling expense per unit for models A and B are $70 per unit and $84 per unit respectively. Assume that total fixed expenses are $277,200 per month and the expected monthly sales for models A and B are 12,600 units and 3,150 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one: a. None of the given answers b. 682,838 c. 985,600 d. 624,676 D e. 459,606 Next page
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