Question

_{The following information is for the Jeffries Corporation: Product A: Selling price per unit Variable cost per unit Product B: Selling price per unit Variable cost per unit Total fixed costs $12.00 $8.00 $27.00 $19.00 $266,000 What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B? O A. 13,300 units of A and 39,900 units of B O B. 66,500 units of A and 0 units of B OC. 9,852 units of A and 3,284 units of B OD. 39,900 units of A and 13,300 units of B}

Answer 1

Weighted average contribution margin ratio:

= {[($12 - $8) X 3] + ($27 - $19)} / 4

= $5

Breakeven units:

= $266,000 / $5

= 53,200

Product A:

= 53,200 X 3/4

= 39,900

Product B:

= 53,200 X 1/4

= 13,300

Option D.