A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have avariable cost of $25, and bar stools $20. Fixed cost for the i rm 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?
A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have avariable cost of $25, and bar stools $20. Fixed cost for the i rm 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?
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have avariable cost of $25, and bar stools $20. Fixed cost for the i rm 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? |
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