Question
A company offers three products, A,B,C The current budget for the upcoming accounting period is presented below, by product: A BC # of units 18
A company offers three products, A,B,C
The current budget for the upcoming accounting period is presented below, by product:
A BC
# of units 18 12 30
Selling price per unit ($)75 50 60
Variable cost per unit($)252015
Fixed costs (total $) 500360900
There is a different customer market for each of these products.
Fixed costs reflect product-specific machinery.
Required
1.Identify which of the two methods to compute the break-even point best suits this scenario.
2.Describe why the method you identified in (1) best suits this scenario.
3.Compute the break-even point in units using this method.
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