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Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the price is...

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Accounting

Yerke Company makes jungle gyms and tree houses for children.For jungle gyms, the price is $120 and variable expenses are $90per unit. For tree houses, the price is $200 and variable expensesare $100. Total fixed expenses are $253,750. Last year, Yerke sold12,000 gyms and 4,000 tree houses. Now suppose that Yerke expectstree house demand to increase from 4,000 to 8,000 units. What isthe number of jungle gyms sold at break-even?

1,750

668

2,625

1,002

875

Answer & Explanation Solved by verified expert
3.6 Ratings (281 Votes)
Given Number of units sold of jungle gyms 12000 units Number of units sold of tree houses 4000 Sales mix 31 In the current year number of units of tree houses sold increased    See Answer
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