Creative Star Corporation produces three lines of desks from wood: classic, royal, and standard. Cost and revenue data pertaining to each product are shown below:

	Classic	Royal	Standard
Selling price	$173	$243	$93
Total variable costs	$74	$164	$64

Classic desks require five square yards of wood, Royal requires ten square yards, and Standard requires three square yards. The high demand for each product line far exceeds the company's production capacity.

If Creative Star Corporation has only 240,000 square yards of wood available, what is the highest total amount of fixed cost the company can incur and still break even?

$2,320,000.

$1,896,000.

$4,752,000.

$7,920,000.

Answer rating: 100% (QA)

Contribution per square yard of wood SP VC Square yard wood for one unit Classic 173 74 5 198 R... View the full answer