Question

Silky Smooth lotions come in three sizes: 4, 8, and 12 ounces. The following table summarizes the selling prices and variable costs per case of each lotion size.


Fixed costs are $ 771,000. Current production and sales are 2,000 cases of 4- ounce bottles; 4,000 cases of 8- ounce bottles; and 1,000 cases of 12- ounce bottles. Silky Smooth typically sells the three lotion sizes in fixed proportions as represented by the preceding sales amounts.

Required:
How many cases of 4-, 8-, and 12- ounce lotion bottles must be produced and sold for Silky Smooth to break even, assuming that the three sizes are sold in fixedproportions?


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  • CreatedDecember 15, 2014
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