Another shoe manufacturer shoes 4u makes three models of


Another shoe manufacturer, Shoes 4U, makes three models of shoe and they wish you to determine their break-even point in dollars.

  1. Their monthly fixed cost is $6000.
  2. The price of the Dress Shoe is $10, it costs $6 to manufacture and annual sales are forecasted at 18000 pairs.
  3. The price of the Sandle Shoe is $3, it costs $1 to manufacture and annual sales are forecasted at 18000 pairs.
  4. The price of the Runner Shoe is $4, it costs $2 to manufacture and annual sales are forecasted at 14000 pairs.

What is the break-even point in dollars?

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