Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $120 and the variable expenses are $90 per unit. For tree houses, the price is $200 and the variable expenses are $100. Total fixed expenses are $253,750. Next year, Yerke expects to sell 12,000 gyms and 8,000 tree houses. What is the total sales revenue at the break-even point? a.$411,250 b.$140,000 c.$665,000 d.$253,700 e.$1,076,250

Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $120 and the variable expenses are $90 per unit. For tree houses, the price is $200 and the variable expenses are $100. Total fixed expenses are $253,750. Next year, Yerke expects to sell 12,000 gyms and 8,000 tree houses. What is the total sales revenue at the break-even point? a.$411,250 b.$140,000 c.$665,000 d.$253,700 e.$1,076,250

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 16E

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Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $120 and the variable expenses are $90 per unit. For tree houses, the price is $200 and the variable expenses are $100. Total fixed expenses are $253,750. Next year, Yerke expects to sell 12,000 gyms and 8,000 tree houses. What is the number of jungle gyms sold by Yerke at the break-even point? a.668 b.1,002 c.1,750 d.2,625 e.875
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