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Garrett Company has the following information relating to its two products, product Red and product Blue. Selling Price Variable Cost Fixed Cost Red $14 $6
Garrett Company has the following information relating to its two products, product Red and product Blue.
Selling Price | Variable Cost | Fixed Cost | |
Red | $14 | $6 | $16,000 |
Blue | $15 | $5 | $10,000 |
If Garrett Company viewed its products in aggregate, what would the break-even point be if managers projected a 60% - 40% sales mix for Red and Blue, respectively? How about a 40% - 60% sales mix for Red and Blue, respectively?
a. 2,955 units; 2,826 units (rounded)
b. 3,000 units; 2,987 units (rounded)
c. 2,444 units; 2,210 units (rounded)
d. 2,667 units; 2,451 units (rounded)
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