Sweet Baby Inc.produces two types of children's specialty bed products - Baby Cribs and Toddler Beds.The following information is available related to each product:
$\begin{array}{llcc}
&\underline{\text {Baby Crib } } &\underline{ \text { Toddler Bed} } \
\text {Sales price per unit } &\$600&\$500\
\text { Variable costs per unit } &150&200\
\end{array}$

Baby cribs account for 60% of total product sales and toddler beds account for the rest.Sweet Baby's total fixed costs are $1 170 000.
Required:
A. How many total children's bed products does the company need to produce and sell in order to break even?
B. How many baby cribs need to be sold in order to break even?

Question

Sweet Baby Inc.produces two types of children's specialty bed products - Baby Cribs and Toddler Beds.The following information is available related to each product:
$\begin{array}{llcc}
  &\underline{\text {Baby Crib } } &\underline{ \text { Toddler Bed}  } \
 \text {Sales price per unit   } &\$600&\$500\
 \text { Variable costs per unit } &150&200\
\end{array}$
 
Baby cribs account for 60% of total product sales and toddler beds account for the rest.Sweet Baby's total fixed costs are $1 170 000.
Required:
 A. How many total children's bed products does the company need to produce and sell in order to break even?
B. How many baby cribs need to be sold in order to break even?

Quizplus · Accepted Answer

The Answer of Sweet Baby Inc.produces two types of children's specialty bed products - Baby Cribs and Toddler Beds.The following information is available related to each product:
$\begin{array}{llcc}
  &\underline{\text {Baby Crib } } &\underline{ \text { Toddler Bed}  } \
 \text {Sales price per unit   } &\$600&\$500\
 \text { Variable costs per unit } &150&200\
\end{array}$
 
Baby cribs account for 60% of total product sales and toddler beds account for the rest.Sweet Baby's total fixed costs are $1 170 000.
Required:
 A. How many total children's bed products does the company need to produce and sell in order to break even?
B. How many baby cribs need to be sold in order to break even?

Sweet Baby Inc Baby Cribs Account for 60% of Total Product Sales and -