Problem $7-12$

A firm is selling two products, chairs and bar stools, each at $$60$ per unit. Chairs have a variable cost of $$25,$ and bar stools $$20.$ Fixed cost for the firm is $$21,000.$

a$.$

If the sales mix is $1$:$1($one chair sold for every bar stool sold$),$ what is the break$-$even point in dollars of sales? In units of chairs and bar stools? $($Round up your unit answers to the next whole number and round "Break$-$even point" to the nearest whole number.$)$

$$Break$-$even point$ $$Number of chairs $$Number of bar stools $$

b$.$

If the sales mix changes to $1$:$4($one chair sold for every four bar stools sold$),$ what is the break$-$even point in dollars of sales? In units of chairs and bar stools? $($Round up your unit answers to the next whole number and round "Break$-$even point" to the nearest whole number.$)$

$$Break$-$even point$ $$Number of chairs $$Number of bar stools $$