PLEASE ANSWER LETTER B!

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IV) Break Even Section (each correct answer is worth 9 points) Make sure you show your work. A) A hardware store sells a variety of products but most can be lumped into three major categories. These categories will average gross profit levels as indicated next to the category description. The overall sales matrix of the company indicates the percentage of overall sales that each category represents. Those percentages are as follows: Description % of total sales Gross Profit Margin 1) Hardware 40% 30% 2) Home Furnishings 35% 40% 3) Lawn and Garden Products 25% 25% If you are told that the fixed overhead (burden) for the company is $806,250 per year. What is the total break even point in total sales dollars for this company if the percentage of sales allocations and the applicable gross profit margins are consistent with the above matrix data? B) In the example above, if competition enters the market and causes sales to reallocate as follows but at the same gross profit margins and the same fixed costs (burden) what would the breakeven point be in total sales dollars? Description Percentage of total sales 1) Hardware 20% 2) Home Furnishings 35% 3) Lawn and Garden Products 45%