XYZ Co. has the following sales mix for its three products: A, 35%; B, 45%; and C, 20%. Fixed costs total $400,000 and the weighted-average contribution margin is $100. How many units of product A must be sold to break-even? a. 800. b. 14,00. с. 1,800. d. 4,000 e. None of the answers is correct.

XYZ Co. has the following sales mix for its three products: A, 35%; B, 45%; and C, 20%. Fixed costs total $400,000 and the weighted-average contribution margin is $100. How many units of product A must be sold to break-even? a. 800. b. 14,00. с. 1,800. d. 4,000 e. None of the answers is correct.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Question

XYZ Co. has the following sales mix for its three products: A, 35%; B, 45%; and C, 20%. Fixed costs
total $400,000 and the weighted-average contribution margin is $100. How many units of product A
must be sold to break-even?
a. 800.
O b. 14,00.
O C. 1,800.
d. 4,000
O e.
None of the answers is correct.

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