Details of this Paper

A firm is selling two products, chairs and bar stools, each at $50 per

Description

solution


Question

A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable;cost of $25, and bar stools $20. Fixed cost for the firm is $20,000.;a. If the sales mix is 1:1 (one chair sold for every bar stool sold), what is the break-even point;in dollars of sales? In units of chairs and bar stools?;b. If the sales mix changes to 1:4 (one chair sold for every four bar stools sold), what is the;break-even point in dollars of sales? In units of chairs and bar stools?

 

Paper#33125 | Written in 18-Jul-2015

Price : $32
SiteLock