Business, 25.02.2020 22:55, kkelley9223
A firm is selling two products, chairs and bar stools, each at $55 per unit. Chairs have a variable cost of $25, and bar stools $20. Fixed cost for the firm is $21,000. 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?
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?
Answers: 3
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A firm is selling two products, chairs and bar stools, each at $55 per unit. Chairs have a variable...
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