Gardner Furniture Company Produces Two Kinds of Chairs: an Oak

question 32

Multiple Choice

Gardner Furniture Company produces two kinds of chairs: an oak model and a chestnut wood model. The oak model sells for $60 and the chestnut wood model sells for $100. The variable expenses are as follows: Expected sales in units next year are: 5,000 oak chairs and 1,000 chestnut chairs. Fixed expenses are budgeted at $135,000 per year.
-The yearly break-even point in total sales for the expected sales mix is:

• A)$270,000
• B)$300,000
• C)$485,000
• D)$500,000

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Definitions:

Story

A narrative, either true or fictitious, designed to interest, amuse, or instruct the listener or reader.

Empirically Keyed Test

A type of self-report test that presents many questionnaire items to two groups that are known to be different in some central way.

Self-report Test

A type of psychological test in which a person fills out a survey or questionnaire with or without the help of an investigator, providing data on their feelings, beliefs, and behaviors.

Personality

The amalgamation of qualities and characteristics that distinguish one's personal identity.