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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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