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Madison Corporation sells three products (M, N, and O) in the following sales mix: 3:1:2. Unit price and cost data are: M N O $
Madison Corporation sells three products (M, N, and O) in the following sales mix: 3:1:2. Unit price and cost data are: M N O $ 4 $6 Unit sales price Unit variable costs $ 7 3 2 Total fixed costs are $340,000. The break-even point in composite units for the current sales mix (round to the nearest unit) is: Multiple Choice 17,000 20,000 102,000 51,000 34,000 Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised break-even point in dollars would be: Multiple Choice $300,000. $400,000. $325,000. $500,000. $375,000
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