Roosevelt Corporation has a weighted-average unit contribution margin of $40 for its two products, Standard and Supreme.Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme.Fixed expenses are $1,800,000.How many Standards would Roosevelt sell at the break-even point?
A)18,000
B)27,000
C)30,000
D)45,000

Question

Quizplus · Accepted Answer

Break-even point in units = Fixed expenses / Weighted-average unit contribution margin= $1,800,000 / $40= 45,000 unitsSince Roosevelt expects to sell 40,000 Standard units, it would need to sell 45,000 - 40,000 = 5,000 Supreme units to break even.

Roosevelt Corporation Has a Weighted-Average Unit Contribution Margin of $40