D. Assume that the mix of goods in a basket is kept constant for long periods. If the price of one good rises very rapidly over
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Complete Question is as under:
JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follow:
PRODUCTS Selling Price Per Unit Variable Cost Per Unit
TRUNK SWITCH $60 $28
GAS DOOR SWITCH $75 $33
GLOVE BOX LIGHT $40 $22
Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are 18,840.
Requirement 1: How many units of each product will need to be sold in order for JJ to break even?
Requirement 2: Use the information from the previous exercises involving JJ Manufacturing to determine their break-even point in sales dollars.
Kindly Find the Solution in the attachment.
