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Information About the K-9 Salon's Two Products Is as Follows

Question 73

Multiple Choice

Information about the K-9 Salon's two products is as follows: Dog Brush Cat Toy Unit sales price $9.00$9.00 Unit variable costs:  Manufacturing $5.25$6.75 Selling .75.75 Total $6.00$7.50 Monthly fixed costs are as follows:  Manufacturing $82,500 Selling and administrative $45,000 Total $127,500\begin{array}{lc}&\underline{\text {Dog Brush}}&\underline{\text { Cat Toy}}\\\text { Unit sales price }&\$9.00&\$9.00 \\\text { Unit variable costs: }\\ \text { Manufacturing } & \$ 5.25&\$6.75 \\\text { Selling } & \underline{.75} & \underline{.75} \\\text { Total }&\$6.00&\$7.50\\\\\text { Monthly fixed costs are as follows: }\\\text { Manufacturing } & \$ 82,500 \\\text { Selling and administrative } & \$ 45,000 \\\text { Total } & \$ 127,500\end{array}
Suppose the sales mix in units is 70% Product X and 30% Product Y. What total monthly sales volume in units is required to break even?


A) 8,333 units
B) 16,667 units
C) 50,000 units
D) 56,667 units

Correct Answer:

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