Answer the following questions using the information below:
The following information is for the Jeffries Corporation:
$\begin{array}{cc}
\text { Product A: Revenue } & \$ 16.00 \
\text { Variable Cost } & \$ 12.00 \
& \
\text { Product B: Revenue } & \$ 24.00 \
\text { Variable Cost } & \$ 16.00 \
& \
\text { Total fixed costs } & \$ 75000
\end{array}$
-What is the break-even point,assuming the sales mix consists of three units of Product A and one unit of Product B?

Question

Answer the following questions using the information below:
The following information is for the Jeffries Corporation:
 $\begin{array}{cc}
\text { Product A: Revenue } & \$ 16.00 \
\text { Variable Cost } & \$ 12.00 \
& \
\text { Product B: Revenue } & \$ 24.00 \
\text { Variable Cost } & \$ 16.00 \
& \
\text { Total fixed costs } & \$ 75000
\end{array}$
-What is the break-even point,assuming the sales mix consists of three units of Product A and one unit of Product B?

Quizplus · Accepted Answer

To find the break-even point, we first calculate the contribution margin per unit for each product: Product A: $16 - $12 = $4; Product B: $24 - $16 = $8. Then, we find the weighted average contribution margin per bundle of 4 units (3A + 1B): (3*$4) + (1*$8) = $20. The total fixed costs are $75,000. So, the number of bundles needed to break even is $75,000 / $20 = 3750 bundles. Since each bundle consists of 3 units of A and 1 unit of B, the break-even point is 11,250 units of A (3750*3) and 3750 units of B.

Answer the Following Questions Using the Information Below: the Following

Answer the Following Questions Using the Information Below:
the Following