Question
1. Montgomery Corp sells two products. Product A sells for $200 per unit, and has unit variable costs of $150. Product B sells for $50
1. Montgomery Corp sells two products. Product A sells for $200 per unit, and has unit variable costs of $150. Product B sells for $50 per unit, and has unit variable costs of $20. Currently, Montgomery sells three unity of product B for every two units of product A sold. Montgomery has fixed costs of $760,000. What is Montgomery's break-even point in units?
| a. | 20,000 units of A and 20,000 units of B | |
| b. | 12,000 units of A and 8,000 units of B | |
| c. | 8,000 units of A and 12,000 units of B | |
| d. | 10,000 units of A and 10,000 units of B |
2. Montgomery Corp sells two products. Product A sells for $200 per unit, and has unit variable costs of $150. Product B sells for $50 per unit, and has unit variable costs of $20. Currently, Montgomery sells three units of product B for every two units of product A sold. Montgomery has fixed costs of $760,000. How many units would Montgomery have to sell to earn a profit of $57,000?
| a. | 21,500 units of A and 21,500 of B | |
| b. | 12,900 units of A and 8,600 units of B | |
| c. | 8,600 units of A and 12,900 units of B | |
| d. | 10,750 units of A and 10,750 units of B
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Internal Audit Practice From A To Z
Authors: Patrick Onwura Nzechukwu
1st Edition
149874205X, 978-1498742054
