Emerald City Jewelers has two products it is currently producing and selling. One is a necklace, and one is a bracelet. Information on these two items follows:
Necklace: Total fixed costs are $70,000, variable costs are $50 per unit, and the unit selling price is $120.
Bracelet: Total fixed costs are $60,000, variable costs are $40 per unit, and the unit selling price is $100. What is the break-even point in units for each of these jewelry items?

Question

Emerald City Jewelers has two products it is currently producing and selling. One is a necklace, and one is a bracelet. Information on these two items follows: 
Necklace: Total fixed costs are $70,000, variable costs are $50 per unit, and the unit selling price is $120. 
Bracelet: Total fixed costs are $60,000, variable costs are $40 per unit, and the unit selling price is $100. What is the break-even point in units for each of these jewelry items?

Quizplus · Accepted Answer

The Answer of Emerald City Jewelers has two products it is currently producing and selling. One is a necklace, and one is a bracelet. Information on these two items follows: 
Necklace: Total fixed costs are $70,000, variable costs are $50 per unit, and the unit selling price is $120. 
Bracelet: Total fixed costs are $60,000, variable costs are $40 per unit, and the unit selling price is $100. What is the break-even point in units for each of these jewelry items?

Emerald City Jewelers Has Two Products It Is Currently Producing