Question 26 Figure 4-6. Xeller Company makes electronic keyboards. The practice

Question

Question 26 Figure 4-6. Xeller Company makes electronic keyboards. The practice model price is $220 and variable expenses are $190. The deluxe model price is $340 and variable expenses are $250. The professional model price is $1,200 and variable expense per unit is $800. Total fixed expenses are $187,000. Generally, Xeller sells 6 practice models and 3 deluxe models for every professional model sold. Refer to Figure 4-6. What is the overall sales revenue at breakeven? Answer $778,800 $387,200 $1,288,700 $2,067,800 $968,000

Explanation / Answer

Let number of professional model sold = x x*(1200-800) + 6x*(220-190) + 3x*(340-250)=187,000 x= 220 overall sales revenue = 220*(1200) + 6*220*(220) + 3*220*(340) =$778,800 $778,800

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