Assuming that the sales mix remains constant,the total number of units that Jamal must sell to break even is:

Question

Quizplus · Accepted Answer

To calculate the break-even point, we need to add up all the fixed costs and variable costs and then divide them by the contribution margin per unit. 
Fixed costs = $4,000 + $1,000 = $5,000
Contribution margin per unit = $8 - $5 = $3
Break-even point = $5,000 / $3 = 1,666.67 units 
To find the total number of units, we need to divide the total revenue by the selling price per unit: 
Total revenue = $20,000 + $10,000 = $30,000 
Selling price per unit = ($20,000 / 2,000 units) + ($10,000 / 1,000 units) = $18 
Total units to break even = $30,000 / $18 = 1,666.67 units 
However, since we can't sell a fraction of a unit, we need to round up to the nearest whole unit, which gives us 5,000 units.

Assuming That the Sales Mix Remains Constant,the Total Number of Units