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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: O a. None of the given answers O b. 196,974 C. 267,718 d. 422,400 e. 292,431 XYZ Company is currently selling its single product for $15. Variable costs are estimated to remain at 70% of the current selling price and fixed costs are estimated to be $4,800 per month. If XYZ decreases its selling price by 10%, its contribution margin ratio will: Select one: a. increase. O b. Cannot determine with the information given. O c. None of the given answers. O d. not change. e decrease

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