A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $30, 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? In units of chairs and bar stools? (Round up your unit answers to the next whole number and round "Break-even point" to the nearest whole number.) Break-even point Number of chairs Number of 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? (Round up your unit answers to the next whole number and round "Break-even point" to the nearest whole number.) Break-even point Number of chairs Number of bar stools $ 3 LA
A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $30, 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? In units of chairs and bar stools? (Round up your unit answers to the next whole number and round "Break-even point" to the nearest whole number.) Break-even point Number of chairs Number of 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? (Round up your unit answers to the next whole number and round "Break-even point" to the nearest whole number.) Break-even point Number of chairs Number of bar stools $ 3 LA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a
variable cost of $30, 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? In units of chairs and bar stools? (Round up your unit
answers to the next whole number and round "Break-even point" to the nearest
whole number.)
Break-even point
Number of chairs
Number of 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? (Round up
your unit answers to the next whole number and round "Break-even point" to the
nearest whole number.)
Break-even point
Number of chairs
Number of bar
stools
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff36f8f7-c1af-4d2c-887e-9ba0e314c4fb%2F5e87c594-64e9-4631-96b2-05dfe621db7e%2Fx5fmm_processed.png&w=3840&q=75)
Transcribed Image Text:A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a
variable cost of $30, 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? In units of chairs and bar stools? (Round up your unit
answers to the next whole number and round "Break-even point" to the nearest
whole number.)
Break-even point
Number of chairs
Number of 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? (Round up
your unit answers to the next whole number and round "Break-even point" to the
nearest whole number.)
Break-even point
Number of chairs
Number of bar
stools
$
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