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XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $420 and $245 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $560 and $266 respectively. The variable selling expense per unit for models A and B are $70 per unit and $84 per unit respectively. Assume that total fixed expenses are $277,200 per month and the expected monthly sales for models A and B are 12,600 units and 3,150 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one: O a. 624,676 O b. 682,338 O c. 985,600 O d. 459,606

XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $420 and $245 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $560 and $266 respectively. The variable selling expense per unit for models A and B are $70 per unit and $84 per unit respectively. Assume that total fixed expenses are $277,200 per month and the expected monthly sales for models A and B are 12,600 units and 3,150 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one: O a. 624,676 O b. 682,338 O c. 985,600 O d. 459,606

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...
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XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $420 and $245 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $560 and $266 respectively. The variable selling expense per unit for models A and B are $70 per unit and $84 per unit respectively. Assume that total fixed expenses are $277,200 per month and the expected monthly sales for models A and B are 12,600 units and 3,150 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one: O a. 624,676 O b. 682,338 O c. 985,600 O d. 459,606 O e. None of the given answers
Transcribed Image Text:XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $420 and $245 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $560 and $266 respectively. The variable selling expense per unit for models A and B are $70 per unit and $84 per unit respectively. Assume that total fixed expenses are $277,200 per month and the expected monthly sales for models A and B are 12,600 units and 3,150 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one: O a. 624,676 O b. 682,338 O c. 985,600 O d. 459,606 O e. None of the given answers
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