The following annual information is for Bressler Corporation: Total fixed costs: $100,000
-If the sales mix consists of two units of Product X and one unit of Product Y,what is the break-even point in units for a year?
A)2,000 units of Y and 4,000 units of X
B)2,025 units of Y and 4,050 units of X
C)4,025 units of Y and 8,050 units of X
D)4,000 units of Y and 8,000 units of X

Question

The following annual information is for Bressler Corporation:  Total fixed costs:  $100,000
-If the sales mix consists of two units of Product X and one unit of Product Y,what is the break-even point in units for a year?
A)2,000 units of Y and 4,000 units of X 
B)2,025 units of Y and 4,050 units of X 
C)4,025 units of Y and 8,050 units of X 
D)4,000 units of Y and 8,000 units of X

Quizplus · Accepted Answer

D)Variable cost per average unit [$2.5 (2)+ $5 (1)] / 3 = $3.33
$11.66(C)- $3.33(C)- $100,000 = 0; C = 12,000 total units, which are 4,000 of Y and 8,000 of X

The Following Annual Information Is for Bressler Corporation: Total