The Lakeside Boatworks is planning to manafacture three types of molded fiber glass recreational boats-a fishing (bass) boat, a ski boat, and a small speedboat. The estimated selling price and variable cost for each type of boat are summarized in the following table.
Boat Variable Cost Selling Price
Bass $ 12,500 $23,000
Ski $ 8,500 $18,000
Speed $ 13,700 $26,000
The company has incurred fixed costs of $2,800,000 to set up its manufacturing operation.If company plans to produce twice as many fishing boat as ski boat respectively with propotion 2:1:1
1. Find number of each type of boat to produce for break even
2. What is break even dollar value