Question: Problem 6 A - 5 ( Algo ) A firm is selling two products, chairs and bar stools, each at $ 5 5 per unit.
Problem AAlgo
A firm is selling two products, chairs and bar stools, each at $ per unit. Chairs have a variable cost of $ and bar stools $ Fixed
cost for the firm is $
a If the sales mix is :one chair sold for every bar stool sold what is the breakeven point in dollars of sales? In units of chairs and
bar stools?
Note: Round up your unit answers to a whole number before calculating the breakeven point and round the breakeven point
to the nearest whole number.
Answer is complete and correct.
b If the sales mix changes to :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?
Note: Round up your unit answers to a whole number before calculating the breakeven point and round the breakeven point
to the nearest whole number.
Answer is complete but not entirely correct.
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