Jackson Company has provided the following information regarding the two products that it sells: $$\begin{array} { | l | r | r | }
\hline & \text { Jet Boats } & \text { Ski Boats } \
\hline \text { Sales price per unit } & \$ 8,000 & \$ 20,000 \
\hline \text { Variable cost per unit } & \$ 4,800 & \$ 14,000 \
\hline
\end{array}$$ Annual fixed costs are $280,000.
How many units must be sold in order for Jackson to breakeven, assuming that Jackson sells five jet boats for every two ski boats sold?

Question

Jackson Company has provided the following information regarding the two products that it sells: $$\begin{array} { | l | r | r | } 
\hline & \text { Jet Boats } & \text { Ski Boats } \
\hline \text { Sales price per unit } & \$ 8,000 & \$ 20,000 \
\hline \text { Variable cost per unit } & \$ 4,800 & \$ 14,000 \
\hline
\end{array}$$ Annual fixed costs are $280,000.
How many units must be sold in order for Jackson to breakeven, assuming that Jackson sells five jet boats for every two ski boats sold?

Quizplus · Accepted Answer

The Answer of Jackson Company has provided the following information regarding the two products that it sells: $$\begin{array} { | l | r | r | } 
\hline & \text { Jet Boats } & \text { Ski Boats } \
\hline \text { Sales price per unit } & \$ 8,000 & \$ 20,000 \
\hline \text { Variable cost per unit } & \$ 4,800 & \$ 14,000 \
\hline
\end{array}$$ Annual fixed costs are $280,000.
How many units must be sold in order for Jackson to breakeven, assuming that Jackson sells five jet boats for every two ski boats sold?

Jackson Company Has Provided the Following Information Regarding the Two