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The Old Towne Manufacturing Company Produces the Following Three Products

Question 128

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The Old Towne Manufacturing Company produces the following three products:
The Old Towne Manufacturing Company produces the following three products:    50% of all sales in units are Saws, 30 percent are Knives, and 20 percent are Measuring Tapes.. Required: Calculate the following values:  a. Break-even point in total units b. Number of Saws that will be sold at break-even c. Total sales in units to obtain a before-tax profit of $19,000 50% of all sales in units are Saws, 30 percent are Knives, and 20 percent are Measuring Tapes..
Required:
Calculate the following values:
a. Break-even point in total units
b. Number of Saws that will be sold at break-even
c. Total sales in units to obtain a before-tax profit of $19,000

Correct Answer:

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a. Ave. CM/unit = ($12 × 0.5) + ($4 × 0....

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