Manix Company has gathered the following data: $\begin{array}{|l|l|l|l|}
\hline & \text { Unit SalesPrice } & \text { Unit Variable Costs } & \text { Unit Sales } \
\hline \text { Product 1 } & \$ 18.00 & \$ 10.00 & 24,500 \
\hline \text { Product 2 } & 27.00 & 17.00 & 17,500 \
\hline \text { Product 3 } & 35.00 & 28.00 & 28,000 \
\hline & & &
\end{array}$
Fixed costs are $233,280. The weighted-average breakeven point is

Question

Manix Company has gathered the following data: $\begin{array}{|l|l|l|l|}
\hline & \text { Unit SalesPrice } & \text { Unit Variable Costs } & \text { Unit Sales } \
\hline \text { Product 1 } & \$ 18.00 & \$ 10.00 & 24,500 \
\hline \text { Product 2 } & 27.00 & 17.00 & 17,500 \
\hline \text { Product 3 } & 35.00 & 28.00 & 28,000 \
\hline & & &
\end{array}$
 Fixed costs are $233,280. The weighted-average breakeven point is

Quizplus · Accepted Answer

The weighted-average breakeven point formula is:
Breakeven point (in units) = Fixed costs ÷ (Weighted-average unit contribution margin)
First, we need to calculate the weighted-average unit contribution margin:
(5,000 units × $25) + (10,000 units × $20) + (15,000 units × $15) = $245,000
$245,000 ÷ 30,000 units = $8.17
Now, we can use the formula to calculate the breakeven point:
Breakeven point (in units) = $233,280 ÷ $8.17 = 28,575.7
Rounding up to the nearest hundred gives us the answer of 28,800 units.

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