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Assume a firm has a constant mix of 3 units of a "Small-sized" product for every 1 unit of "Large-sized" product. The following information is available for the 2 products: "Small-sized":     Sale price     $20 per unit                         Variable cost    14 per unit "Large-sized":     Sale price      $30 per unit                         Variable cost     18 per unit Total fixed costs:                     $48,000 The breakeven point in units would be:   Question 16 options:   a)  1,600 units of Small and 4,800 units of Large   b)  400 units of Small and 1,200 units of Large   c)  4,800 units of Small and 1,600 units of Large   d)  1,200 units of Small and 400 units of Large

Assume a firm has a constant mix of 3 units of a "Small-sized" product for every 1 unit of "Large-sized" product. The following information is available for the 2 products: "Small-sized":     Sale price     $20 per unit                         Variable cost    14 per unit "Large-sized":     Sale price      $30 per unit                         Variable cost     18 per unit Total fixed costs:                     $48,000 The breakeven point in units would be:   Question 16 options:   a)  1,600 units of Small and 4,800 units of Large   b)  400 units of Small and 1,200 units of Large   c)  4,800 units of Small and 1,600 units of Large   d)  1,200 units of Small and 400 units of Large

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume a firm has a constant mix of 3 units of a "Small-sized" product for every 1 unit of "Large-sized" product. The following information is available for the 2 products:

"Small-sized":     Sale price     $20 per unit
                        Variable cost    14 per unit

"Large-sized":     Sale price      $30 per unit
                        Variable cost     18 per unit

Total fixed costs:                     $48,000

The breakeven point in units would be:

 

Question 16 options:

 

a) 

1,600 units of Small and 4,800 units of Large
 

b) 

400 units of Small and 1,200 units of Large
 

c) 

4,800 units of Small and 1,600 units of Large
 

d) 

1,200 units of Small and 400 units of Large
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