Fernley Company produces two different products with the following data for the most recent month: Table Chair Total Selling price per unit $600 $200 Variable cost per unit $480 $120 Expected unit sales 28,000 7,000 35,000 Sales mix 80% 20% 100% Fixed costs $3,024,000 Assume the sales mix remains the same at all levels of sales. Response area units of the Table product and Response area units of the Chair product must be sold to break even for the month.

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Fernley Company produces two different products with the following data for the most recent month: Table Chair Total
Selling price per unit $600 $200 Variable cost per unit $480 $120 Expected unit sales 28,000 7,000 35,000 Sales mix 80%
20% 100% Fixed costs $3,024,000 Assume the sales mix remains the same at all levels of sales. Response area units of the
Table product and Response area units of the Chair product must be sold to break even for the month.
Transcribed Image Text:Fernley Company produces two different products with the following data for the most recent month: Table Chair Total Selling price per unit $600 $200 Variable cost per unit $480 $120 Expected unit sales 28,000 7,000 35,000 Sales mix 80% 20% 100% Fixed costs $3,024,000 Assume the sales mix remains the same at all levels of sales. Response area units of the Table product and Response area units of the Chair product must be sold to break even for the month.
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