Manix Company has gathered the following data: Fixed costs are $233,280.Calculate the weighted-average breakeven point for Manix.(Do not round your intermediate calculations. )

Question

Quizplus · Accepted Answer

To calculate the weighted-average breakeven point, we need to first calculate the contribution margin per unit, which is the selling price per unit ($60) minus the variable cost per unit ($24), which equals $36. 
Next, we need to calculate the weight of each product line in the overall sales mix. The weight for Product A is 10,000/26,000 or 0.3846 and the weight for Product B is 16,000/26,000 or 0.6154. 
Finally, we can calculate the weighted-average breakeven point by dividing the fixed costs ($233,280) by the weighted-average contribution margin per unit [($36 x 0.3846) + ($16 x 0.6154)] which equals 28,800 units. Thus, the best choice is B.

Manix Company Has Gathered the Following Data: Fixed Costs Are