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Information about the XYZ Company's two products includes: Product D Product E Unit selling price: $9.00 $9.00 Unit variable costs: Manufacturing $5.25 $6.75 Selling 0.75
Information about the XYZ Company's two products includes:
Product D | Product E | |
Unit selling price: | $9.00 | $9.00 |
Unit variable costs: | ||
Manufacturing | $5.25 | $6.75 |
Selling | 0.75 | 0.75 |
Total unit variable costs | $6.00 | $7.50 |
Monthly fixed costs are as follows:
Manufacturing | $ 82,500 |
Selling and administrative | 45,000 |
Total | $127,500 |
What is the total monthly sales volume in units required to break even when the sales mix in units is 70 percent Product D and 30 percent Product E?
A) 42,333 units
B) 8,333 units
C) 50,000 units
D) 56,667 units
E) 16,667 units
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