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A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25 and bar stools $20 Fixed cost for the firm is $200 a. if the sales mix is 1:1 one chair sold for every bar stool sold what is the breakeven point in dollars of sales? Units? b. if the sales mix changes to 1:4 one chair sold for every four bar stools sold what is the breakeven point in dollars of sales? In units of chairs and bar stools?
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What happens if balance doesn’t exist
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