The Jordan Company Makes Three Products $\text {\underline{ Product A} }$

Essay

The Jordan Company makes three products.The cost data for these three products is as follows:

                             $\text {\underline{ Product A} }$   $\text {\underline{ Product B} }$   $\text {\underline{ Product C} }$
$\begin{array}{lcc}\text { Selling price } & \$ 10 & &\$ 20&&&\$40 \\\text { Wariable cocte } & 7& & 12&&&16\end{array}$
Total annual fixed costs are $840,000. The firm's experience has been that about 20 percent of dollar sales come from product A, 60 percent from B, and 20 percent from C.
Required:
a. Compute break-even in sales dollars.
b. Determine the number of units to be sold at the break-even point.