Question

In: Accounting

minot Furniture sells two models of desks to retail customers—basic and adjustable (for those who want...

minot Furniture sells two models of desks to retail customers—basic and adjustable (for those who want the option to stand at their desk). Basic desks sell for $600 each and adjustable desks sell for $900 each. The variable cost of a basic desk is $360 and that of an adjustable desk is $450. Annual fixed costs at Minot Furniture are $243,000. The break-even point at the current sales mix is 750 total units.

Required:

How many basic desks and how many adjustable desks are sold at the break-even level?

What is the assumed sales mix?

Solutions

Expert Solution

The answer has been presenetd in the supporting sheet. For detailed answer refer to the supporting sheet. For detailed answer refer to the supporting sheet.


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