How many units of Micro must be sold at the breakeven point? Diamantine has the following unit and mix data:
$$\begin{array} { | l | c | c | c | }
\hline & \text { Micro } & \text { Nano } & \text { Total } \
\hline \text { Urit Sales Price } & \$ 5 & \$ 4 & \
\hline \text { Unit Contribution Margin } & 0.75 & 1.20 & \
\hline \text { Sales Mix } \$ & \mathbf { 8 0 \% } & \mathbf { 2 0 \% } & \
\hline \text { Fixed Costs } & & & \$ 84,000 \
\hline \text { Target Profit } & & & \$ 42,000 \
\hline
\end{array}$$
A) 100,000
B) 80,000
C) 20,000
D) 40 615

Question

How many units of Micro must be sold at the breakeven point? Diamantine has the following unit and mix data:
$$\begin{array} { | l | c | c | c | } 
\hline & \text { Micro } & \text { Nano } & \text { Total } \
\hline \text { Urit Sales Price } & \$ 5 & \$ 4 & \
\hline \text { Unit Contribution Margin } & 0.75 & 1.20 & \
\hline \text { Sales Mix } \$ & \mathbf { 8 0 \% } & \mathbf { 2 0 \% } & \
\hline \text { Fixed Costs } & & & \$ 84,000 \
\hline \text { Target Profit } & & & \$ 42,000 \
\hline
\end{array}$$
A) 100,000
B) 80,000
C) 20,000
D) 40 615

Quizplus · Accepted Answer

To find the breakeven point, calculate the weighted average contribution margin: (0.75 * 0.8) + (1.20 * 0.2) = 0.84. Then, divide the fixed costs by this margin: 84,000 / 0.84 = 100,000 total units. Since Micro is 80% of the sales mix, 100,000 * 0.8 = 80,000 units of Micro.

How Many Units of Micro Must Be Sold at the Breakeven