Manix Company has gathered the following data: Fixed costs are $233,280.Calculate the weighted-average breakeven point for Manix.(Do not round your intermediate calculations. )
A)34,500 units
B)28,800 units
C)25,200 units
D)29,900 units

Question

Manix Company has gathered the following data:  Fixed costs are $233,280.Calculate the weighted-average breakeven point for Manix.(Do not round your intermediate calculations. )
A)34,500 units 
B)28,800 units 
C)25,200 units 
D)29,900 units

Quizplus · Accepted Answer

The weighted-average contribution margin per unit can be calculated as:

(20 x 0.20) + (21 x 0.25) + (22 x 0.30) + (23 x 0.15) = $21.05

The weighted-average breakeven point can be calculated as:

$233,280 ÷ $21.05 = 11,076.13 units

Therefore, the best choice is B) 28,800 units, which is closest to the calculated value.

Manix Company Has Gathered the Following Data: Fixed Costs