Assume that Bisque Co.sold 12,000 units of Product A and 18,000 units of Product B in the last year.The unit contribution margins for Products A and B are $10 and $20 respectively.Bisque has fixed costs of $420,000.The break-even point in units is:

Question

Quizplus · Accepted Answer

To find the break-even point in units, calculate the weighted average contribution margin: [(12,000 * $10) + (18,000 * $20)] / (12,000 + 18,000) = $16. The break-even point is $420,000 / $16 = 26,250 units.

Assume That Bisque Co