A firm is selling two products chairs besides bar stools

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Reference no: EM1399388

A firm is selling two products chairs besides bar stools each at $50 per unit. Spaces have a variable cost of $25 as well as bar stools $20. Fixed cost for the firm is $20,000.

a. If the sales mix is 1:1 one chair sold for every bar stool sold then what is the break-even point in dollars of sales? In units of chairs as well as bar stools?

b. If the sales mix changes to 1:4 one chair sold for every four bar stools sold then what is the break-even point in dollars of sales? In units of chairs as well as bar stools?

Reference no: EM1399388

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