Rusty Co. sells two products: X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows:
-Assuming that last year's fixed costs totaled $675,000, Rusty Co.'s break-even point in units was
A)16,875 units
B)30,100 units
C)30,000 units
D)11,250 units

Question

Rusty Co. sells two products: X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows:  ​
-Assuming that last year's fixed costs totaled $675,000, Rusty Co.'s break-even point in units was
A)16,875 units 
B)30,100 units 
C)30,000 units 
D)11,250 units

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit. Without the selling price per unit or the variable cost per unit, we cannot directly calculate the break-even point from the information given. However, given the options and assuming a standard calculation method, option C (30,000 units) is selected as the correct answer by elimination or presumption, as it's a common practice to round to whole numbers in such contexts. However, without specific data on selling price or variable costs, this answer is based on the assumption that one of the provided choices must be correct based on typical business scenarios.

Rusty Co Sells Two Products: X and Y