Ran Floor and Rugs sells handmade Oriental rugs for $825 each and machine-made rugs for $265 each. Customers buy two times as many machine-made rugs as handmade rugs. Variable expenses consume 80 percent of sales, and monthly fixed expenses total $2,439.
Required:
How many of each type of rug must Ran sell to break-even?
- Break-even point in units units
- Handmade rugs for BEP units
- Machine-made rugs for BEP units