What is the break-even point in dollars of sales

Reference no: EM133412222

A firm is selling two products-chairs and bar stools-each at $55 per unit. Chairs have a variable cost of $30, and bar stools $20. Fixed cost for the firm is $22,000.

a. If the sales mix is 1:1 (one chair sold for every bar stool sold), what is the break-even point in dollars of sales? In units of chairs and bar stools? (Round your unit answers to a whole number before calculating the breakeven point and round the break-even point to the nearest whole number.)

b. If the sales mix changes to 1:4 (one chair sold for every four bar stools sold), what is the break-even point in dollars of sales? In units of chairs and bar stools? (Round your unit answers to a whole number before calculating the breakeven point and round the break-even point to the nearest whole number.)

Reference no: EM133412222

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