Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Genie Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows Enlightner Foglighter Sales

Genie Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows

Enlightner Foglighter
Sales volume in units 800 600
Unit sales price $ 324 $ 440
Unit variable cost 216 264
Unit contribution margin $ 108 $ 176

It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $98,000. Demand is high enough for either product to keep the plant operating at maximum capacity.

Assuming that sales mix in terms of units remains constant, what is the breakeven point in total units?

Multiple Choice

  • 691.

  • 949.

  • 715.

  • 809.

  • 1,010.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Precalculus

Authors: Michael Sullivan

9th edition

321716835, 321716833, 978-0321716835

Students also viewed these Accounting questions