$140 B                                 $1,000                                       $400   Fixed cost totals $600,000 annually. The expected sales mix in u

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter2: The Purchasing Process
Section: Chapter Questions
Problem 4DQ
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The following date pertain to the two products manufacture by a company

Products                      Sales price per unit                       Variable cost per unit

A                                 $240                                            $140

B                                 $1,000                                       $400

 

Fixed cost totals $600,000 annually. The expected sales mix in units is 60% for product A and 40% for product B. How many units of the two products together must the company sell to break-even?

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