A company produced 15,000 pairs of skis of model A and model B. The sell department can sell between 9,000 pairs and 13,000 pairs of either products.
Per unit (Pair) Data
Model A Model B
Selling price $88 $80
Variable costs 52.80 52.80
Fixed costs will total 369,600 if Model A is produced but will be only $316,800 if the Model B is produced. The company is subject to a 40 percent income tax rate.
The total sales revenue at which the company would make the same profit or loss regardless of the ski model it decided to produce is.