Sweet Baby Inc produces two types of children’s specialty bed products – Baby Cribs and Toddler Beds

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?

 

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