Gerin Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows Enlightner 900 Foglighter 500 $ 357 $ 495 297 238 $ 119 $ 198 Sales volume in units Unit sales price Unit variable cost Unit contribution margin It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $109,000. Demand is high enough for either product to keep the plant operating at maximum capacity Assuming that sales mix in terms of units remains constant, what is the breakeven point in total units? Multiple Choice O 717. 1,036 975
Gerin Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows Enlightner 900 Foglighter 500 $ 357 $ 495 297 238 $ 119 $ 198 Sales volume in units Unit sales price Unit variable cost Unit contribution margin It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $109,000. Demand is high enough for either product to keep the plant operating at maximum capacity Assuming that sales mix in terms of units remains constant, what is the breakeven point in total units? Multiple Choice O 717. 1,036 975
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Geria Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows
Enlightner
900
Foglighter
500
$ 495
$ 357
238
$ 119
Sales volume in units
Unit sales price
Unit variable cost
Unit contribution margin
It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $109.000. Demand is high enough for either product
to keep the plant operating at maximum capacity.
Assuming that sales mix in terms of units remains constant, what is the breakeven point in total units?
Multiple Choice
717.
1,036
297
$ 198
975.
Brou 19 of 20 ##
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