Answer the following questions using the information below:
The following information is for the Jeffries Corporation:
Product A: Revenue $\quad \$ 16.00$
Variable Cost $\quad \$ 12.00$
Product B: Revenue $\quad \$ 24.00$
Variable Cost $\quad \$ 16.00$
Total fixed costs
$\$ 75,000$
-What is the breakeven point,assuming the sales mix consists of three units of Product A and one unit of Product B?
A) 10,000 units of A and 5,000 units of B
B) 11,250 units of A and 3,750 units of B
C) 12,000 units of A and 4,000 units of B
D) 4,000 units of A and 12,000 units of B

Question

Answer the following questions using the information below:
The following information is for the Jeffries Corporation:
 Product A: Revenue $\quad \$ 16.00$
Variable Cost $\quad \$ 12.00$
Product B: Revenue $\quad \$ 24.00$
Variable Cost $\quad \$ 16.00$
Total fixed costs
$\$ 75,000$
-What is the breakeven point,assuming the sales mix consists of three units of Product A and one unit of Product B?
A) 10,000 units of A and 5,000 units of B
B) 11,250 units of A and 3,750 units of B
C) 12,000 units of A and 4,000 units of B
D) 4,000 units of A and 12,000 units of B

Quizplus · Accepted Answer

The breakeven point is calculated by dividing the total fixed costs by the weighted average contribution margin per unit. The contribution margin for Product A is $4 ($16 - $12), and for Product B is $8 ($24 - $16). With a sales mix of 3 units of A and 1 unit of B, the weighted average contribution margin is $5 [(3*$4 + 1*$8)/4]. The breakeven point is $75,000 / $5 = 15,000 units, which corresponds to 11,250 units of A and 3,750 units of B.

Answer the Following Questions Using the Information Below: the Following $16.00\quad \$ 16.00$16.00

Answer the Following Questions Using the Information Below:
the Following $\quad \$ 16.00$