What is the break-even point for this business?
Tuesday, September 29th, 2009 at
9:49 pm
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 ,000.
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?
Tagged with: bar stools • break even point • chairs • fixed cost • variable cost
Filed under: Your Community Center
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let chairs be X, stools be Y
30X + 19Y + 36000 = 44X + 44Y
4X=Y
try to solve for X and Y
hope that helps