Question
Linburgh Inc manufactures model airplanes and repair kits. The planes account for 80% of the
sales mix, and the kits the remainder. The variable cost ratio for the planes is 85% and 70% for
the kits. Fixed costs are $99,000. Compute the breakeven point in sales dollars.
O $825,000
$550,000
$1,222,222
$293,333
hp
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Transcribed Image Text

Linburgh Inc manufactures model airplanes and repair kits. The planes account for 80% of the sales mix, and the kits the remainder. The variable cost ratio for the planes is 85% and 70% for the kits. Fixed costs are $99,000. Compute the breakeven point in sales dollars. O $825,000 $550,000 $1,222,222 $293,333 hp