Relating to its two products, Product Red and Product Blue, with selling prices, variable costs, and fixed costs as specified below:
Selling Price Variable Cost Fixed Cost
Red $14 $6 $16,000
Blue $15 $5 $10,000
If Effortist Corporation views its products in aggregate, what would be the break-even point if managers projected a 60% - 40% sales mix for Red and Blue, respectively? How about a 40% - 60% sales mix for Red and Blue, respectively?
a.3,000 units for Red and 2,987 units for Blue (rounded)
b.2,444 units for Red and 2,210 units for Blue (rounded)
c.2,667 units for Red and 2,451 units for Blue (rounded)
d.2,955 units for Red and 2,826 units for Blue (rounded)