Question: Production &Operations Management HW Show your calculation steps Question 1: A firm produces three products in a repetitive process facility. Product A sells for $60;

Production &Operations Management

Show your calculation steps

Question 1: A firm produces three products in a repetitive process facility. Product A sells for $60; its variable costs are $20. Product B sells for $200; its variable costs are $80. Product C sells for $25; its variable costs are $15. Product D sells for $20; its variable costs are $10. The firm has fixed costs of $300,000 per year. Last year, the firm sold 1000 units of A, 2000 units of B, 10,000 units of C and 11,000 units of D. Calculate the break-even point of the firm. The firm has some idle capacity at these volumes, and chooses to cut the selling price of A from $60 to $30, believing that its sales volume will rise from 1000 units to 2000 units. What is the revised break-even point?

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