1.

PPP is a firm that manufactures 2 products: Lite Deluxe Selling price and cost data for each unit of the two products are as follows. Lite Deluxe Selling price $ 5,000 $ 12,000 $ 6,000 Variable Manufacturing Cost $ 3,000 Variable Non Manufacturing $ 1,000 Cost $ 2,000 Expected sales mix is given: for every 5 units that PPP sells, 2 units would be from selling Lite, 3 units would be from selling Deluxe. Assuming PPP operates in a way that is consistent with all the relevant Cost-Volume-Profit assumptions, the total number of combined (Deluxe and Lite) units it needs to sell to breakeven is calculated as 100 units. Which of the following statements about PPP is/are true? 1. Its fixed costs to manufacture its products is $220,000. 2. The number of units of Deluxe it needs to sell to breakeven is 60 units 3. The number of units of Lite it needs to sell to breakeven is 30 units Statement 1 only Statement 2 only Statement 3 only Statement 1 and 2 only Statement 1 and 3 only