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Question - Genie Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows:
Enlightner
Foglighter
Sales volume in units
700
600
Unit sales price
$300
$400
Unit variable cost
200
240
Unit contribution margin
$100
$160
It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $190,000. Demand is high enough for either product to keep the plant operating at maximum capacity.
Assuming that sales mix in terms of dollars remains constant, what is the breakeven point in dollars?
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