Question
Mark Corporation produces two models of calculators. The Business model sells for $60, and the Math model sells for $40. The variable expenses are given
Mark Corporation produces two models of calculators. The Business model sells for $60, and the Math model sells for $40. The variable expenses are given below:
Business Model | Math Model | |
Variable production costs per unit | $14 | $15 |
Variable selling and administrative expensesper unit | $10 | $ 5 |
The fixed expenses are $77,500 per month. The expected sales of each model are 2 units of the Business model for every 1 unit of the Math model.
What is the break-even point in units for the Business model, given the expected sales mix?
A) 1,326 Business model units
B) 969 Business model units
C) 2,530 Business model units
D) 1,685 Business model units
E) 662 Business model units
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