Fortune Tools Produces and Sells Two Products Fixed Costs for the Entire Company Were $17,570

question 69

Essay

Fortune Tools produces and sells two products.Data concerning these products for the most recent month appear below:
$$\begin{array} { | l | r | r | } \hline & \text { Product } XY Z & \text { Product VAR } \\\hline \text { Sales } & \$ 14,000 & \$ 27,000 \\\hline \text { Variable costs } & \$ 6,720 & \$ 12,550 \\\hline\end{array}$$
Fixed costs for the entire company were $17,570.Required:
a.Determine the overall break-even point for the company.b.If the sales mix shifts toward Product XYZ,with no change in total sales,what will happen to the break-even point for the company? Explain.

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Definitions:

Mobile Phone Store

A retail outlet specializing in selling mobile phones and related accessories.

Standard Error

A statistic that measures the dispersion or variability of a sample statistic from the population parameter, used to infer the precision of the sample mean.

Null Hypothesis

A statement used in statistical testing that proposes no significant difference or effect, serving as a default position until evidence suggests otherwise.

Sample Proportion

The part of a sample that has a particular attribute, often used in statistical analysis.