Question
25. The president of AMG Enterprises is considering expanding sales by producing three different versions of their product. After reviewing the sales forecasts, the sales
25.The president of AMG Enterprises is considering expanding sales by producing three different versions of their product. After reviewing the sales forecasts, the sales department feels that for every item of A sold, 4 of M can be sold and 8 of G can be sold.
The following information has been assembled by the sales department and the production department.
A
M
G
Sales price (per unit)
$15
$10
$5
VC per unit
$9
$7
$4.5
The fixed costs associated with the manufacture of these three products are $75,000 per year. What is the break-even total units?
Select one:
a. 23,684 units
b. 30,769 units
c. 44,318 units
d. None of the above
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