The Matrix Company has three product lines of belts-A, B, and C-with contribution margins of $7, $5, and $4, respectively. The president foresees sales of 400,000 units in the coming period, consisting of 40,000 units of A, 200,000 units of B, and 160,000 units of C. The company's fixed costs for the period are $1,020,000. Assuming that the product mix is unchanged, how many units of Product A will be sold to breakeven? Answer:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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The Matrix Company has three product lines of belts-A, B, and C-with contribution margins of $7, $5, and $4,
respectively. The president foresees sales of 400,000 units in the coming period, consisting of 40,000 units of A,
200,000 units of B, and 160,000 units of C. The company's fixed costs for the period are $1,020,000.
Assuming that the product mix is unchanged, how many units of Product A will be sold to breakeven?
Answer:
Transcribed Image Text:The Matrix Company has three product lines of belts-A, B, and C-with contribution margins of $7, $5, and $4, respectively. The president foresees sales of 400,000 units in the coming period, consisting of 40,000 units of A, 200,000 units of B, and 160,000 units of C. The company's fixed costs for the period are $1,020,000. Assuming that the product mix is unchanged, how many units of Product A will be sold to breakeven? Answer:
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