Swifty Inc manufactures model airplanes and repair kits. The planes account for 90% of the sales mix, and the kits the remainder. The variable cost ratio for the planes is 95% and 80% for the kits. Fixed costs are $52000. Compute the breakeven point in sales dollars. $800000 $260000 O $1040000 O $1155556

Swifty Inc manufactures model airplanes and repair kits. The planes account for 90% of the sales mix, and the kits the remainder. The variable cost ratio for the planes is 95% and 80% for the kits. Fixed costs are $52000. Compute the breakeven point in sales dollars. $800000 $260000 O $1040000 O $1155556

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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