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Big Mikes make nuts in two sizes: Medium and Large. The full year information for 2018 is listed below Medium Large Units sold 18000 4500
Big Mikes make nuts in two sizes: Medium and Large. The full year information for 2018 is listed below
Medium | Large | |
Units sold | 18000 | 4500 |
fixed costs | 320,000 | 80,000 |
selling price per unit | 80 | 140 |
variable cost per unit | 65 | 100 |
The fixed costs are $400,ooo are allocated to the two nuts based on the volume. If we assume the sales mix and costs for 2019 did not change at all; how many medium units will need to be sold for Big Mike's to break even. Will it be 21,333; 16,000; 2,000 or 21,334?
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