A Multiple-Product: BEP

BEP = Fixed Costs + Net Income/ Composite CM ratio

= $130,000 /0.486

= $267,490 for the firm

BEP for Regular Model: (How does one allocate?)

(200/350) x $267,490 = $152,851

BEP for Deluxe Model:

(150/350) x $267,490 = $114,639

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