Solution-Compute the break-even point in units using this

Compute the break-even point in units using this method

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Reference no: EM132873490

Question - CVP Analyis - They currently focus on three products.Artist panels used for fine art painting GH Artist Supply custom-produces wood products. It is run out of a garage workshop by a married couple.

Dog-sized furniture (mini-stairs to allow for smaller aging dogs to get on and off the couch, etc.)

Customized butcher block cutting boards

The current budget for the upcoming accounting period is presented below, by product:

	Panels	Dog Furn.	Cutting Boards
# of units	18	12	30
Selling price per unit ($)	75	50	60
Variable cost per unit ($)	25	20	15
Fixed costs (total $)	500	360	900

There is a different customer market for each of these products.

Fixed costs reflect product-specific machinery.

Required -

1. Identify which of the two methods to compute the break-even point best suits this scenario.

2. Describe why the method you identified in (1) best suits this scenario.

3. Compute the break-even point in units using this method.

Reference no: EM132873490

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Compute the break-even point in units using this method

Reference no: EM132873490

Reference no: EM132873490

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