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Using the Following Unit Data for a Company That Produces

Question 107

Multiple Choice

Using the following unit data for a company that produces Product A and B, what is the breakeven point round to nearest unit when fixed costs total $175,000?
 Product A Product B Units sold last year 2,2501,000 Sales price $200$450 Cost of goods sold 145350 Sales commission 1537 Variable costs 160387 Contribution margin $40$63\begin{array}{lrr}&\underline{\text { Product A}}& \underline{\text { Product B} }\\\text { Units sold last year } & 2,250 & 1,000 \\\text { Sales price } & \underline{\$ 200} & \underline{\$ 450} \\\text { Cost of goods sold } & 145 & 350 \\\text { Sales commission } & \underline{15} & \underline{37} \\\text { Variable costs } & \underline{160} & \underline{387} \\\text { Contribution margin } & \underline{\underline{\$ 40}} & \underline{\underline{\$ 63}}\end{array}


A) 659 Product A; 556 Product B
B) 792 Product A; 352 Product B
C) 849 Product A; 849 Product B
D) 2,574 Product A; 1,144 Product B

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