Madison Corporation sells three products (M, N, and O) in the following sales mix: 3:1:2. Unit price and cost data are: Total fixed costs are $340,000. The break-even point in composite units for the current sales mix (round to the nearest unit) is:
A) 17,000
B) 20,000
C) 102,000
D) 51,000
E) 34,000

Question

Madison Corporation sells three products (M, N, and O) in the following sales mix: 3:1:2. Unit price and cost data are:  Total fixed costs are $340,000. The break-even point in composite units for the current sales mix (round to the nearest unit) is:
A) 17,000 
B) 20,000 
C) 102,000 
D) 51,000 
E) 34,000

Quizplus · Accepted Answer

11eaadfd_cd4d_2e75_95d8_c948c7b69bff_TB6948_00 Break-even point in composite units = $340,000/$20 = 17,000 composite units

Madison Corporation Sells Three Products (M, N, and O) in the Following