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
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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.
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
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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