A Firm Sells Two Products

Multiple Choice

A firm sells two products. Product A sells for $100; its variable cost is $40. Product B sells for $150; its variable cost is $75. Product A accounts for 70 percent of the firm's sales, while B accounts for 30 percent. The firm's fixed costs are $1 million annually. Assume the firm operates 300 days per year. How many dollars of sales does the firm need to generate per day to break even?

A) $1,754,386
B) $5,848
C) $3,333
D) $2,325,581
E) $7,752