Gardner Furniture Company produces two kinds of chairs: an oak model and a chestnut wood model. The oak model sells for $60 and the chestnut wood model sells for $100. The variable expenses are as follows:
Oak Chestnut

Variable production costs per unit $30 $35

Variable selling & administrative expenses per unit $6 $5

Expected sales in units next year are: 5,000 oak chairs and 1,000 chestnut chairs. Fixed expenses are budgeted at $135,000 per year.

150. calculate The yearly break-even point in total sales for the expected sales mix .

 

Answer rating: 100% (QA)

Lets break down the calculations for each part Part A Fixed Manufacturing Cost To find the fixed man... View the full answer