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 your unit answers to a whole number before calculating the breakeven point and round the break-even point to the nearest whole number.)
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 your unit answers to a whole number before calculating the breakeven point and round the break-even point to the nearest whole number.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...
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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 $20,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3aff2365-9f44-4770-b8e3-e2ed0988bbf7%2Fd8785f15-9e2e-4e46-98d6-5b1fb8da6eeb%2Fwyhxchs_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 $20,000.
![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
your unit answers to a whole number before calculating the breakeven point and
round the 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%2F3aff2365-9f44-4770-b8e3-e2ed0988bbf7%2Fd8785f15-9e2e-4e46-98d6-5b1fb8da6eeb%2Fsmm3wk_processed.png&w=3840&q=75)
Transcribed Image Text: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
your unit answers to a whole number before calculating the breakeven point and
round the break-even point to the nearest whole number.)
Break-even point
Number of chairs
Number of bar stools
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