French Publishers, Inc. of New Albany, Indiana sells two books, Basic Financial Accounting (BFA) and...
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Accounting
French Publishers, Inc. of New Albany, Indiana sells two books, Basic Financial Accounting (BFA) and Basic Managerial Accounting (BMA). Present revenue, cost, and sales data for the two products are:
BFA BMA
Units sold 4,000 2,000
Selling price per book. $200 $250
Variable expenses per unit. $150 $225
Fixed expenses total $500,000 annually.
What is the breakeven point in total sales dollars (for both products), assuming the same sales mix of product sold (select the closest answer)?
$1,800,000
$2,000,000
$2,600,000
$2,200,000
None of the Above
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