Question
Hyman designs and manufactures gourmet chocolates which he sells via a local market. Details of his two products are as follows: Product type: Peanut Jelly
Hyman designs and manufactures gourmet chocolates which he sells via a local market. Details of his two products are as follows:
| Product type: | Peanut Jelly (PJ) | Lemon Truffle (LT) |
|---|---|---|
| Selling price (excluding GST) | $4.50 | $3.20 |
| Variable costs as a % of sales | 40% | 35% |
| Average monthly sales volume (units) | 80 | 150 |
The business has a monthly fixed cost of $400.
What are the break-even sales units for a month? Round your final calculation to whole numbers.
| A. | 32 PJ and 53 LT. | |
| B. | 80 PJ and 150 LT. | |
| C. | 87 PJ and 87 LT. | |
| D. | 61 PJ and 113 LT. |
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Horngrens Accounting The Financial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
10th Edition
0133117561, 978-0133117561
