A firm produces three products. Product A sells for $60 with variable costs of $20; Product B sells for $200 with variable costs of $120; Product C sells for $25 with variable costs of $10.
Last year the firm sold 100 units of Product A; 2000 units of Product B; and 10,000 units of Product C. The firm has fixed costs of $320,000 per year.
Calculate the multiproduct breakeven point in dollars. (Excel Solution)