document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=174151>Question 174151</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Can someone please help me with this problem:\r<BR>\n" );
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document.write( "The monthly data are provided:\r<BR>\n" );
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document.write( "Unit selling price: Standard = $100 ; Premium = $150<BR>\n" );
document.write( "Variable manufacturing costs: Standard = $60; Premium = $90<BR>\n" );
document.write( "Variable selling and administrative costs: Standard = $15 ; Premium = $10<BR>\n" );
document.write( "Estimated unit sales per month: Standard = $1,000 ; Premium = $2,000\r<BR>\n" );
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document.write( "Total monthly fixed costs are expected to be $15,000. What is the break-even volume in sales dollars at the expected sales mix?\r<BR>\n" );
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document.write( "a. $25,714<BR>\n" );
document.write( "b. $45,000<BR>\n" );
document.write( "c. $48,000<BR>\n" );
document.write( "d. $60,000 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #129146 by </B><A HREF=/tutors/aboutme.mpl?userid=Mathtut><B>Mathtut(3670)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Mathtut><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=129146\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> To compute the break-even point for a company: <BR>\n" );
document.write( "Sales – Variable Costs = Contribution Margin <BR>\n" );
document.write( "Contribution Margin – Fixed Costs = Net Income (which should be 0 to calculate the break-even point<BR>\n" );
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document.write( "contribution margin -15000 must equal zero<BR>\n" );
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document.write( "CM-15000=0......so CM=15000<BR>\n" );
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document.write( "we are working backward here so now<BR>\n" );
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document.write( "Sales(S)-VC=CM(15000)<BR>\n" );
document.write( "lets call the number of standard units sold x<BR>\n" );
document.write( "lets call the number of premium units sold y <BR>\n" );
document.write( "Sales-VC(standard)+Sales-VC(premium)=15000<BR>\n" );
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document.write( "100x-75x+150y-100y=15000<BR>\n" );
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document.write( "25x+50y=15000.....eq 1<BR>\n" );
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document.write( "according to the sales mix ration of x to y is $1000 to $2000<BR>\n" );
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document.write( "1000y=2000x--->x=1/2y.....eq 2<BR>\n" );
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document.write( "take x's value from eq 2 and plug it into eq 1<BR>\n" );
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document.write( "25(y/2)+50y=15000<BR>\n" );
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document.write( "25y+100y=30000... multiplied all terms by 2<BR>\n" );
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document.write( "125y=30000<BR>\n" );
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document.write( "y=240<BR>\n" );
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document.write( "x=1/2(240)=120<BR>\n" );
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document.write( "so to figure out total sales <BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%28%28120%29%2B150%28240%29=12000%2B36000=48000%29 ALIGN=MIDDLE  ALT=\"highlight%28%28120%29%2B150%28240%29=12000%2B36000=48000%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >to break even<BR>\n" );
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document.write( "C is your answer <BR>\n" );
document.write( " </SPAN>\n" );
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