Reference no: EM132905826

Crown Co. 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                 620                    520

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 $150,000. Demand is high enough for either product to keep the plant operating at maximum capacity.

Problem 1: Assuming that sales mix in terms of dollars remains constant, what is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answer up to the nearest whole number.)

Multiple Choice

Option 1: $1,107,958.
Option 2: $407,056.
Option 3: $468,804.
Option 4: $280,656.
Option 5: $451,026.