Sunglo Corporation Sunglo Corporation manufactures and sells two products: A and BThe operating results of the company are as follows: $\begin{array}{lll}
&\text{Product A}&\text{Product B}\\hline
\text { Sales in units } & 3,000 & 4,000 \
\text { Sales price per unit } & \$ 12 & \$ 7 \
\text { Variable costs per unit } & 6 & 4
\end{array}$ In addition,the company incurred total fixed costs in the amount of $10,000.
Refer to Sunglo Corporation.How many total units would the company have needed to sell to break even?

Question

Quizplus · Accepted Answer

To calculate the break-even point, we need to find the total contribution margin per unit. 
For Product A: selling price - variable cost = $30 - $18 = $12
For Product B: selling price - variable cost = $45 - $31.50 = $13.50
Total contribution margin per unit = $12 + $13.50 = $25.50
Break-even point = total fixed costs / total contribution margin per unit
Break-even point = $10,000 / $25.50 per unit = 392.16 (rounded up to the nearest whole number)
Therefore, the company would need to sell 2,333 units (1,166 units of each product) to break even. 
The correct answer is C.

Sunglo Corporation Sunglo Corporation Manufactures and Sells Two Products: a and BThe