Question

Standlar Company makes wireless speakers. The standard model price is $360 and variable expenses are $210....

Standlar Company makes wireless speakers. The standard model price is $360 and variable expenses are $210. The deluxe model price is $500 and variable expenses are $300. The superior model price is $1,600 and variable expense per unit is $600. Total fixed expenses are $300,000. Generally, Standlar sells 8 standard models and 4 deluxe models for every superior model sold. What is the overall sales revenue at break-even?

a.

$387,200

b.

$550,000

c.

$648,000

d.

$480,000

e.

$778,800

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