A firm sells two products. Product R sells for $20; its variable cost is $12. Product S sells for $50; its variable cost is $15. Product R accounts for 30 percent of the firm's sales, while S accounts for 70 percent. The firm's fixed costs are $2 million annually. Calculate the firm's break-even point in dollars.

Question

Quizplus · Accepted Answer

The Answer of A firm sells two products. Product R sells for $20; its variable cost is $12. Product S sells for $50; its variable cost is $15. Product R accounts for 30 percent of the firm's sales, while S accounts for 70 percent. The firm's fixed costs are $2 million annually. Calculate the firm's break-even point in dollars.

A Firm Sells Two Products