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Eastwick Produces and Sells Three Products -
Fixed Costs Total $200,000

Question 36

Multiple Choice

Eastwick produces and sells three products. Last month's results are as follows:
 P1  P2  P3  Revenues $100,000$200,000$200,000Variable costs 40,000140,00080,000\begin{array}{llr} &\text { P1 } &\text { P2 } &\text { P3 } \\ \text { Revenues } &\$100,000&\$200,000&\$200,000\\ \text {Variable costs } &40,000&140,000&80,000\end{array}

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Fixed costs total $200,000. What sales volume would generate an operating profit of $150,000? (Assume the current product mix.)


A) $650,000.
B) $610,000.
C) $729,167.
D) $850,000.

Correct Answer:

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