Benjamin Co. has three products A, B, and C, and its fixed costs are $69,000. The sales mix for its products are 3 units of A, 4 units of B, and 1 unit of C. Information about the three products follows:
A B C
$$\begin{array} { l | l | l | l | l }
\text { Projected sales in dollars..... } & \$ 192,000 & \$ 192,000 & \$ 64,000 \
\hline \text { Selling price per unit......... } & \$ 40 & \$ 30 & \$ 40 \
\hline \text { Contribution margin ratio ...... } & 30 \% & 35 \% & 35 \%
\end{array}$$ (a) Calculate the company's break-even point in composite units and sales dollars.
(b) Calculate the number of units of each individual product to be sold at the break-even point.

Question

Benjamin Co. has three products A, B, and C, and its fixed costs are $69,000. The sales mix for its products are 3 units of A, 4 units of B, and 1 unit of C. Information about the three products follows:
A B C
 $$\begin{array} { l | l | l | l | l } 
\text { Projected sales in dollars..... } & \$ 192,000 & \$ 192,000 & \$ 64,000 \
\hline \text { Selling price per unit......... } & \$ 40 & \$ 30 & \$ 40 \
\hline \text { Contribution margin ratio ...... } & 30 \% & 35 \% & 35 \%
\end{array}$$ (a) Calculate the company's break-even point in composite units and sales dollars.
(b) Calculate the number of units of each individual product to be sold at the break-even point.

Quizplus · Accepted Answer

The Answer of Benjamin Co. has three products A, B, and C, and its fixed costs are $69,000. The sales mix for its products are 3 units of A, 4 units of B, and 1 unit of C. Information about the three products follows:
A B C
 $$\begin{array} { l | l | l | l | l } 
\text { Projected sales in dollars..... } & \$ 192,000 & \$ 192,000 & \$ 64,000 \
\hline \text { Selling price per unit......... } & \$ 40 & \$ 30 & \$ 40 \
\hline \text { Contribution margin ratio ...... } & 30 \% & 35 \% & 35 \%
\end{array}$$ (a) Calculate the company's break-even point in composite units and sales dollars.
(b) Calculate the number of units of each individual product to be sold at the break-even point.

Benjamin Co (A) Calculate the Company's Break-Even Point in Composite Units and Its