Flagstaff Tractor sells two products, large tractors and small tractors. A large tractor sells for $120,000 per unit with variable costs of $30,000 per unit. Small tractors sell for $82,500 per unit with variable costs of $18,000 per unit. Total fixed costs for the company are $5,916,000. Flagstaff Tractor typically sells one large tractor for every four small tractors. What is the breakeven point in total units?     85 units     176 units     24 units     38 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Flagstaff Tractor sells two products, large tractors and small tractors. A large tractor sells for $120,000 per unit with variable costs of $30,000 per unit. Small tractors sell for $82,500 per unit with variable costs of $18,000 per unit. Total fixed costs for the company are $5,916,000. Flagstaff Tractor typically sells one large tractor for every four small tractors. What is the breakeven point in total units?

   

85 units

   

176 units

   

24 units

   

38 units

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