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Big Ted Inc. (BTI) is an up and coming manufacturer in the Lamp industry and have won numerous awards in recent years. Their management is very well respected. Fixed costs for BTI are $177,000. BTI manufactures two different products, big lamps and small lamps. Each big lamp sells for $12.80 and has variable costs of $7.30. Each small lamp sells for $16.70 and has variable costs of $11.30. In BTI's operations, for every 1 big lamp that is sold, 3 small lamps are also sold. BTI has recently signed a big sales contract and is very excited about the future.
Required:
Problem 1: How many total units (total units of big lamps + total units of small lamps) must be sold for BTI to break even?
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