Respuesta :
Answer:
42,600 units
Explanation:
For product A:
Contribution margin = Sales - Variable expenses
= $17 - $14
= $3
For product B:
Contribution margin = Sales - Variable expenses
= $28 - $17
= $11
Assume the current sales makes is one unit of Product A and one unit of Product B.
Current Total Contribution margin = ($3 × 1/2) + ($11 × 1/2)
= $7
Hence,
Current break-even = Fixed costs ÷ Contribution margin
= $213,000 ÷ 7
= 30,429 units
Now;
Assuming the sales mix consists of three units of Product A and one unit of Product B.
Contribution margin would be = ($3 × 3/4) + ($11 × 1/4)
= $5/unit
Hence,
Break-even = $213,000 ÷ 5
= 42,600 units
