I am Proud of How Hard You are Working (PHW) manufacturers two unique products: Product A and Product B. Information for each product is provided below: Product AProduct BUnit Selling Price$52$128Unit Variable Cost$22$38 Historically, 80% of all units sold are for Product A. PHW has total fixed costs of $264,600. Using the provided information, please answer the following questions.How many total units must be sold to break-even?

The Break-even point indicates that total units are to be sold by the business entity to recover its…

Answered: I am Proud of How Hard You are Working…

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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I am Proud of How Hard You are Working (PHW) manufacturers two unique products: Product A and Product B. Information for each product is provided below:

	Product A	Product B
Unit Selling Price	$52	$128
Unit Variable Cost	$22	$38

Historically, 80% of all units sold are for Product A. PHW has total fixed costs of $264,600. Using the provided information, please answer the following questions.

How many total units must be sold to break-even?

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