Question - 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?