The following information is for the Jeffries Corporation: Product A: Revenue $14.00 Variable Cost $9.00 Product B: Revenue $26.00 Variable Cost $11.00 Total fixed costs $388,500 What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B? OA. 77,700 units of A and 0 units of B OB. 12,950 units of A and 38,850 units of B O C. 14,942 units of A and 4,981 units of B OD. 38,850 units of A and 12,950 units of B

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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The following information is for the Jeffries Corporation:
Product A: Revenue
$14.00
Variable Cost
$9.00
Product B: Revenue
$26.00
Variable Cost
$11.00
Total fixed costs
$388,500
What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B?
OA. 77,700 units of A and 0 units of B
OB. 12,950 units of A and 38,850 units of B
OC. 14,942 units of A and 4,981 units of B
OD. 38,850 units of A and 12,950 units of B
Transcribed Image Text:The following information is for the Jeffries Corporation: Product A: Revenue $14.00 Variable Cost $9.00 Product B: Revenue $26.00 Variable Cost $11.00 Total fixed costs $388,500 What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B? OA. 77,700 units of A and 0 units of B OB. 12,950 units of A and 38,850 units of B OC. 14,942 units of A and 4,981 units of B OD. 38,850 units of A and 12,950 units of B
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