Company X produces two models of lithium batteries, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $60 and $35 respectively. The selling price per unit and the variable manufacturing cost per unit for model Bare $80 and $38 respectively. The variable selling expense per unit for models A and B are $10 per unit and $12 per unit respectively. Assume that total fixed expenses are $39,600 per month and the expected monthly sales for models A and B are 1,800 units and 450 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) O a. 89,239 Ob. 65,658 O. 140,800 O d. None of the given answers O e. 97,477
Company X produces two models of lithium batteries, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $60 and $35 respectively. The selling price per unit and the variable manufacturing cost per unit for model Bare $80 and $38 respectively. The variable selling expense per unit for models A and B are $10 per unit and $12 per unit respectively. Assume that total fixed expenses are $39,600 per month and the expected monthly sales for models A and B are 1,800 units and 450 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) O a. 89,239 Ob. 65,658 O. 140,800 O d. None of the given answers O e. 97,477
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Company X produces two models of lithium batteries, A and B. The selling price per unit and the variable manufacturing cost per unit
for model A are $60 and $35 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $80
and $38 respectively. The variable selling expense per unit for models A and B are $10 per unit and $12 per unit respectively. Assume
that total fixed expenses are $39,600 per month and the expected monthly sales for models A and B are 1,800 units and 450 units
respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number)
O a. 89,239
ОБ. 65,658
О с. 140,800
O d. None of the given answers
O e. 97,477
е.
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