XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $240 and $140 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $320 and $152 respectively. The variable selling expense per unit for models A and B are $40 per unit and $48 per unit respectively. Assume that total fixed expenses are $158,400 per month and the expected monthly sales for models A and B are 7,200 units and 1,800 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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XYZ Company produces two models of wood
chairs, A and B. The selling price per unit and the
variable manufacturing cost per unit for model A
are $240 and $140 respectively. The selling price
per unit and the variable manufacturing cost per
unit for model B are $320 and $152 respectively.
The variable selling expense per unit for models A
and B are $40 per unit and $48 per unit
respectively. Assume that total fixed expenses are
$158,400 per month and the expected monthly
sales for models A and B are 7,200 units and 1,800
units respectively. If the sales mix and sales units
are as expected, the break-even in sales ($) is:
(round figures to the nearest number) Select one:
а. 389,908
b. None of the given answers
с. 262,632
d. 356,958
е. 563,200
Transcribed Image Text:XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $240 and $140 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $320 and $152 respectively. The variable selling expense per unit for models A and B are $40 per unit and $48 per unit respectively. Assume that total fixed expenses are $158,400 per month and the expected monthly sales for models A and B are 7,200 units and 1,800 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one: а. 389,908 b. None of the given answers с. 262,632 d. 356,958 е. 563,200
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