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

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Reference no: EM132511121

                                                French                  Meditrainian                   Welsh

Normal annual selling volume           100,000                 200,000                 300,000

Unit selling price                              $2.00                    $1.40                     $0.80

Variable cost per unit                      $1.20                        $0.80                  $0.50

Question 1: 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. What is the break-even quantity and dollars of each product?

Reference no: EM132511121

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