A company offers three products, A,B,C

The current budget for the upcoming accounting period is presented below, by product:

A B C

# of units 18 12 30

Selling price per unit ($) 75 50 60

Variable cost per unit ($) 25 20 15

Fixed costs (total $) 500 360 900

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.