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The firm Prussian Clausewitz produces three products: Blcher, Napoleon, and Wellington. These three products are sold at a sales mix of 1:3:2, respectively. Blcher Napoleon

The firm Prussian Clausewitz produces three products: Blcher, Napoleon, and Wellington. These three products are sold at a sales mix of 1:3:2, respectively.

Blcher Napoleon Wellington
Price (per unit) $5,000 $18,000 $15,000
Variable Cost per Unit $4,000 $5,000 $5,000

The firm has $6,000,000 in fixed costs. How many Napoleon units must the firm sell at breakeven (round up to nearest unit if necessary)?

Selected Answer: d.

462 Napoleon units.

Answers: a.

100 Napoleon units.

b.

1,385 Napoleon units.

c.

300 Napoleon units.

d.

462 Napoleon units.

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