Question
Water Rockets Company has provided the following information regarding the two products that it sells: Jet Boats Ski Boats Sales price per unit $ 12
Water Rockets Company has provided the following information regarding the two products that it sells:
Jet Boats | Ski Boats | |
Sales price per unit | $ 12 comma 000$12,000 | $ 30 comma 000$30,000 |
Variable cost per unit | $ 4 comma 900$4,900 | $ 16 comma 000$16,000 |
Annual fixed costs are
$ 310 comma 000$310,000.
How many units must be sold in order for Water Rockets to breakeven, assuming the company sells five jet boats for every two ski boats sold? (Round intermediary dollar amounts to the nearest dollar and round unit amounts up to the next whole unit.)
A.
2525
jet boats and
1010
ski boats
B.
1010
jet boats and
2525
ski boats
C.
2121
jet boats and
99
ski boats
D.
5252
jet boats and
2121
ski boats
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started