Ace Manufacturing plans to produce two products, Product C and Product F, during the next year, with the following characteristics.
Total projected fixed costs for the company are $30,000. Assume that the product mix would be the same at the breakeven point as at the expected level of sales of both products. What is the projected number of units (rounded) of Product C to be sold at the breakeven point?
A) 2,308 units.
B) 9,231 units.
C) 11,538 units.
D) 15,000 units.

Question

Ace Manufacturing plans to produce two products, Product C and Product F, during the next year, with the following characteristics.
 Total projected fixed costs for the company are $30,000. Assume that the product mix would be the same at the breakeven point as at the expected level of sales of both products. What is the projected number of units (rounded) of Product C to be sold at the breakeven point?
A) 2,308 units. 
B) 9,231 units. 
C) 11,538 units. 
D) 15,000 units.

Quizplus · Accepted Answer

At the breakeven point, Ace would sell 9,231 units of Product C based on a sales mix of 80%.
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Ace Manufacturing Plans to Produce Two Products, Product C and Product