Sweet Baby Inc produces two types of children’s specialty bed products – Baby Cribs and Toddler Beds The following information is available related to each product:
Baby Crib Toddler Bed
Sales price per unit $600 $500
Variable costs per unit 150 200
Baby cribs account for 60% of total product sales and toddler beds account for the rest Sweet Baby’s total fixed costs are $1,170,000
A How many total children’s bed products does the company need to produce and sell in order to break even?
B How many baby cribs need to be sold in order to break even?