A firm produces three products. Product A sells for $50; its variable costs are $15. Product B sells for $200; its variable costs are $150. Product C sells for $25; its variable costs are $10. Last year, the firm sold 5000 units of A, 3000 units of B, and 6000 units of C. The firm has fixed costs of $220,000 per year. Calculate the break-even point in dollars for the firm.

Question

Quizplus · Accepted Answer

The Answer of A firm produces three products. Product A sells for $50; its variable costs are $15. Product B sells for $200; its variable costs are $150. Product C sells for $25; its variable costs are $10. Last year, the firm sold 5000 units of A, 3000 units of B, and 6000 units of C. The firm has fixed costs of $220,000 per year. Calculate the break-even point in dollars for the firm.

A Firm Produces Three Products