Breakeven analysis of three products is similar to the analysis of two products. Company M sells a product in three models. The model A has a contribution margin per unit of $10. The model B has a CM per unit of $12. And the model C has a CM per unit of $15. Its typical sales mix is 40% model A, 30% model B and 30% model C. Total fixed costs for the year are $121,000. How many basic and deluxe units must Company M sell to break even? Model A: 4,000 units; Model B: 3,000 units; Model C: 3,000 units Model A: 2,000 units; Model B: 1,500 units; Model C: 1,500 units Model A: 6,000 units; Model B: 4,500 units; Model C: 4,500 units Model A: 5,000 units; Model B: 3,750 units; Model C: 3,750 units
Breakeven analysis of three products is similar to the analysis of two products. Company M sells a product in three models. The model A has a contribution margin per unit of $10. The model B has a CM per unit of $12. And the model C has a CM per unit of $15. Its typical sales mix is 40% model A, 30% model B and 30% model C. Total fixed costs for the year are $121,000. How many basic and deluxe units must Company M sell to break even?
Model A: 4,000 units; Model B: 3,000 units; Model C: 3,000 units
Model A: 2,000 units; Model B: 1,500 units; Model C: 1,500 units
Model A: 6,000 units; Model B: 4,500 units; Model C: 4,500 units
Model A: 5,000 units; Model B: 3,750 units; Model C: 3,750 units
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