Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

Exercise 9

(2011 CPA Exam) A company produces and sells two products. The first product accounts for 75% of sales and the second product accounts for the remaining 25% of sales. The first product has a selling price of $10 per unit, variable costs of $6 per unit, and allocated fixed costs of $100,000. The second product has a selling price of $25 per unit, variable costs of $13 per unit, and allocated fixed costs of $212,000. At the break-even point, what number of units of the first product will have been sold?
A) 52,000
B) 39,000
C) 25,000
D) 14,625