A Firm Sells Two Products

question 67

Essay

A firm sells two products.Product R sells for $20;its variable cost is $6.Product S sells for $50;its variable cost is $30.Product R accounts for 60 percent of the firm's sales,while S accounts for 40 percent.The firm's fixed costs are $4 million annually.Calculate the firm's break-even point in dollars.

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Definitions:

Sacral Plexus

A network of nerves arising from the lower back which supplies nerves to the pelvis, buttocks, genitals, thighs, calves, and feet.

Lumbar

Referring to the lower segment of the spine, comprising five vertebrae, key in supporting body weight and flexibility.

Brachial

Pertaining to the arm, specifically the area from the shoulder to the elbow.

Lumbosacral Plexus

A complex network of nerves located in the lower back, providing motor and sensory function to the pelvic area, buttocks, and legs.