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Using the Following Unit Data for a Company That Produces

Question 114

Multiple Choice

Using the following unit data for a company that produces Product X and Y, what is the breakeven point when fixed costs total $280,000?  Product X Product Y Units sold last year 2,0002,000 Sales price $150$150 Cost of goods sold 7550 Sales commission 1025 Variable costs 8575 Contribution margin $65$75\begin{array}{lrr}&\underline{\text { Product X}}& \underline{\text { Product Y} }\\\text { Units sold last year } & 2,000 & 2,000 \\\text { Sales price } & \underline{\$ 150} & \underline{\$ 150} \\\text { Cost of goods sold } & 75 & 50 \\\text { Sales commission } & \underline{10} & \underline{25} \\\text { Variable costs } & \underline{85} & \underline{75} \\\text { Contribution margin } & \underline{\underline{\$ 65}} & \underline{\underline{\$ 75}} \\\end{array}


A) 1,120 Product A; 1,120 Product B
B) 0 Product A; 2,000 Product B
C) 1,000 Product A; 1,000 Product B
D) 2,000 Product A; 2,000 Product B

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