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What is the break-even quantity and dollars of each product

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Question - Of the total fixed costs of $282,000, $18,000 could be avoided if the French Carpet was dropped, $96,000 if the Meditrainian Carpet was dropped and $60,000 if the Welsh Carpet was dropped. The remaining fixed costs are common and are unavoidable unless the company went out of business.

a. What is the break-even quantity and dollars of each product?

b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Explain this result.

Reference no: EM132495701

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