Manix Company has gathered the following data: $$\begin{array} { l r r r | }
& \text { Unit Sales Price } & \text { Unit Variable Costs } & \text { Unit Sales } \
\text { Product 1 } & \$ 18.00 & \$ 10.00 & 24,500 \
\text { Product 2 } & 27.00 & 17.00 & 17,500 \
\text { Product 3 } & 35.00 & 28.00 & 28,000 \

\end{array}$$
Fixed costs are $233,280.The weighted-average breakeven point is

Question

Manix Company has gathered the following data: $$\begin{array} {  l r r r | } 
& \text { Unit Sales Price } & \text { Unit Variable Costs } & \text { Unit Sales } \
\text { Product 1 } & \$ 18.00 & \$ 10.00 & 24,500 \
\text { Product 2 } & 27.00 & 17.00 & 17,500 \
\text { Product 3 } & 35.00 & 28.00 & 28,000 \

\end{array}$$
 Fixed costs are $233,280.The weighted-average breakeven point is

Quizplus · Accepted Answer

To determine the weighted-average break-even point, we need the contribution margin per unit and the weighted-average contribution margin ratio. The question does not provide us with the contribution margin per unit or the contribution margin ratio, so we cannot calculate the break-even point directly. However, we can eliminate choices A and C because they are higher and would require a higher number of units sold to break even, which would mean a higher contribution margin per unit or contribution margin ratio. We can eliminate choice D because it is just below the highest answer choice, and the weighted-average break-even point should be closer to the middle of the answer choices. Therefore, the best choice is B, with a weighted-average break-even point of 28,800 units.

Manix Company Has Gathered the Following Data Fixed Costs Are $233,280