Manix Company has gathered the following data: $\begin{array}{rrrc}
& \text { Unit Sales Price } & \text { Unit Variable Costs } & \text { Unit Sales } \
\text { Product 1 } & \$ 18.00 & \$ 10.00 & 24,500 \
\text { Product 2 } & 27.00 & 17.00 & 17,500 \
\text { Product 3 } & 35.00 & 28.00 & 28,000 \
\end{array}$ Fixed costs are $233,280. The weighted-average breakeven point is
A) 34,500 units.
B) 28,800 units.
C) 25,200 units.
D) 29,900 units.

Question

Manix Company has gathered the following data: $\begin{array}{rrrc} 
& \text { Unit Sales Price } & \text { Unit Variable Costs } & \text { Unit Sales } \
\text { Product 1 } & \$ 18.00 & \$ 10.00 & 24,500 \
\text { Product 2 } & 27.00 & 17.00 & 17,500 \
\text { Product 3 } & 35.00 & 28.00 & 28,000 \
\end{array}$ Fixed costs are $233,280. The weighted-average breakeven point is
A) 34,500 units.
B) 28,800 units.
C) 25,200 units.
D) 29,900 units.

Quizplus · Accepted Answer

To find the weighted-average breakeven point, calculate the contribution margin for each product, find the weighted average contribution margin, and divide the total fixed costs by this weighted average. The weighted-average breakeven point is 28,800 units.

Manix Company Has Gathered the Following Data Fixed Costs Are $233,280