Part B
GH Artist Supply, Inc. is a new company that specializes inpanels and frames for artists.
In a new product line, GH managers plan to create new,eco-friendly panels in three sizes: large, medium, and small.
The current budget plan for the first year of operationsprovides the following information:
| Â Â Small | Medium | Large |
| # of units | 200 | 110 | 80 |
| Selling price per unit   | $20 | $45 | $90 |
| Variable cost per unit | $14 | $18 | $31 |
| Fixed costs | $5,000 | $2,800 | $2,200 |
Required
Two managers within GH are arguing about the best way tocalculate the break-even point in this multi-product scenario. Eachhas their own method they would like to use.
Compute the break-even point using the two common methods usedfor multi-product scenarios.
For each method, describe the assumption that is unique to thatmethod.
