Question
YaHo, Inc. is a coffee roaster and sells two types of beans, Regular and Organic. During the month of April, the firm sold 38,000 containers
YaHo, Inc. is a coffee roaster and sells two types of beans, Regular and Organic. During the month of April, the firm sold 38,000 containers of Regular coffee and 12,000 containers of Organic coffee. The total fixed costs for the month for the firm are $620,000. Selling prices and cost information for both products follow. What is the firm's break-even point in units of Regular and Organic?
Product | Sales Price per container | Variable Cost Per container | ||
Regular | $ | 7.50 | $ | 4.75 |
Organic |
| 11.00 |
| 6.50 |
a. | 129,987 Regular containers and 41,049 Organic containers | |
b. | 46,941 Regular containers and 148,644 Organic containers | |
c. | 41,049 Regular containers and 129,987 Organic containers | |
d. | 148,644 Regular containers and 46,941 Organic containers | |
e. | 97,792 Regular containers and 97,792 Organic containers |
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