I need both part 1 & 2 of this question. I asked this question from a tutor yesterday and he gave me the wrong answer.
Of the total fixed expenses of $273,000, $26,800 could be avoided if the Velcro product is dropped, $77,500 if the Metal product is dropped, and $19,300 if the Nylon product is dropped. The remaining fixed expenses of $149,400 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely.
What is the break-even point in unit sales for each product? (Do not round intermediate calculations.)
If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? (Do not round intermediate calculations.)