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The Lakeside Boatworks is planning to manafacture three types of molded fiber glass recreational boats-a fishing (bass) boat, a ski boat, and a small speedboat. The estimated selling price and variable cost for each type of boat are summarized in the following table.
Boat Variable Cost Selling PriceBass $ 12,500 $23,000Ski $ 8,500 $18,000Speed $ 13,700 $26,000
The company has incurred fixed costs of $2,800,000 to set up its manufacturing operation.If company plans to produce twice as many fishing boat as ski boat respectively with propotion 2:1:1
1.find number of each type of boat to produce for break even
2.what is break even dollar value
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