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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 700 600
Unit sales price $ 306 $ 410
Unit variable cost 204 246
Unit contribution margin $ 102 $ 164

It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $92,000. 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 705. 939. 1,000. 799. 681.

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