The Horner Company makes three products.The cost data for these three products is as follows:
$\begin{array}{llll}
&Product~ A&Product~ B&Product ~C\\hline
\text { Selling price } & \$ 10 & \$ 20 & \$ 40 \
\text { Variable costs } & 7 & 12 & 16
\end{array}$ 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. $\text { Compute break-even in sales dollars }$
b. $\text { Determine the number of units to be sold at the break-even point }$

Question

The Horner Company makes three products.The cost data for these three products is as follows:
 $\begin{array}{llll}
&Product~ A&Product~ B&Product ~C\\hline
\text { Selling price } & \$ 10 & \$ 20 & \$ 40 \
\text { Variable costs } & 7 & 12 & 16
\end{array}$ 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. $\text { Compute break-even in sales dollars }$ 
 b. $\text { Determine the number of units to be sold at the break-even point }$

Quizplus · Accepted Answer

The Answer of The Horner Company makes three products.The cost data for these three products is as follows:
 $\begin{array}{llll}
&Product~ A&Product~ B&Product ~C\\hline
\text { Selling price } & \$ 10 & \$ 20 & \$ 40 \
\text { Variable costs } & 7 & 12 & 16
\end{array}$ 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. $\text { Compute break-even in sales dollars }$ 
 b. $\text { Determine the number of units to be sold at the break-even point }$

The Horner Company Makes Three Products Total Annual Fixed Costs Are $840,000