Question
A firm sells three products. Product 1: $57 sales price per unit; $40 variable cost per unit. Product 2: $26 sales price per unit; $13
A firm sells three products.
Product 1: $57 sales price per unit; $40 variable cost per unit. Product 2: $26 sales price per unit; $13 variable cost per unit. Product 3: $105 sales price per unit; $87 variable cost per unit.
In a typical year, 20% of sales units are Product 1, while 40% of sales units Product 2, and 40% of sales units are Product 3.
If the firm has $118,036 in fixed costs, what is the firm's breakeven point in composite units (simplify the sales mix so there is one unit of Product 1 per composite unit)?
Round your final answer to the nearest whole unit.
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