The following information is for Alex Corp:

What is the breakeven point assuming the sales mix consists of two units of Product X and one unit of Product Y?
A) 842.5 units of Y and 1,685 units of X
B) 3,000 units of Y and 1,500 units of X
C) 1 units of Y and 10,000 units of X
D) 1,500 units of Y and 3,000 units of X

Question

The following information is for Alex Corp:

What is the breakeven point assuming the sales mix consists of two units of Product X and one unit of Product Y?
A) 842.5 units of Y and 1,685 units of X 
B) 3,000 units of Y and 1,500 units of X 
C) 1 units of Y and 10,000 units of X 
D) 1,500 units of Y and 3,000 units of X

Quizplus · Accepted Answer

D) N = units of product Y; and 2N = units of product X;
($12.00 - $4.50) × 2N + ($44.50 - $9.50) × N - $75,000 = 0
$15.00N + $35.00N = $75,000
$50N = $75,000
N = 1,500 units
Product Y = 1,500 units; Product X = 3,000 units

The Following Information Is for Alex Corp