Q5) A company is planning on producing and selling three products. The following table summarizes price and cost data for the three products. Company officials estimate that the three products will sell in a mix such that 3 units of product 2 and 5 of product 3 will be sold for each 2 sold of product 1. If fixed costs are estimated at $3.7 million, determine the number of units of each product needed to break even. How does this translate into sales of the three products STYLE A B C Selling price Variable cost/ pair $85 $80 $95 50 40 67
Q5) A company is planning on producing and selling three products. The following table summarizes price and cost data for the three products. Company officials estimate that the three products will sell in a mix such that 3 units of product 2 and 5 of product 3 will be sold for each 2 sold of product 1. If fixed costs are estimated at $3.7 million, determine the number of units of each product needed to break even. How does this translate into sales of the three products STYLE A B C Selling price Variable cost/ pair $85 $80 $95 50 40 67
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q5) A company is planning on producing and selling three products. The following table
summarizes price and cost data for the three products. Company officials estimate that the
three products will sell in a mix such that 3 units of product 2 and 5 of product 3 will be sold
for each 2 sold of product 1. If fixed costs are estimated at $3.7 million, determine the number
of units of each product needed to break even. How does this translate into sales of the three
products
STYLE
A
В
C
Selling price
Variable cost/ pair
$85
$80
$95
50
40
67
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