The following information is for the Jeffries Corporation:

What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of

A) 14,500 units of A and 4,833 units of B
B) 39,150 units of A and 13,050 units of B
C) 87,000 units of A and 0 units of B
D) 13,050 units of A and 39,150 units of B

Question

The following information is for the Jeffries Corporation:

What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of

A) 14,500 units of A and 4,833 units of B 
B) 39,150 units of A and 13,050 units of B 
C) 87,000 units of A and 0 units of B 
D) 13,050 units of A and 39,150 units of B

Quizplus · Accepted Answer

N = units of product B; and 3N = units of product A;
($14.00 - $8.00) x 3N + ($36.00 - $14.00) x N - $522,000 = 0
$18.00N + $22.00N = $522,000
$40N = $522,000
N = 13,050 units
Product A = 39,150 units; Product B = 13,050 units

The Following Information Is for the Jeffries Corporation