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UP Forklifts Sells Two Products, Large Forklifts and Small Forklifts

Question 219

Multiple Choice

UP Forklifts sells two products, large forklifts and small forklifts. A large forklift sells for $80,000 per unit with variable costs of $20,000 per unit. Small forklifts sell for $55,000 per unit with variable costs of $12,000 per unit. Total fixed costs for the company are $3,944,000. UP Forklifts typically sells one large forklift for every four smalls. What is the breakeven point in total units?


A) 85 units
B) 176 units
C) 38 units
D) 24 units

Correct Answer:

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