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StormLrd StormLrd
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7 years ago
What is the break-even point, assuming the sales mix consists of three units of Product A and one unit of Product B?
A) 10,000 units of A and 5,000 units of B
B) 3,750 units of A and 3,750 units of B
C) 12,000 units of A and 4,000 units of B
D) 18,750 units of A and 6,250 units of B
E) 11,250 units of A and 3,750 units of B
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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#1
7 years ago
E
Explanation:  E) N = units of product B; and 3N = units of product A;
   ($16.00 - $12.00)3N + ($24.00 - $16.00) N - $75,000 = 0
   $12N + $8N = $75,000
   $20N = $75,000
   N = 3,750 units
Product A = 11,250 units; Product B = 3,750 units
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