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Broadway Company Produces and Sells Two Models of Calculators Total Monthly Fixed Costs Are Expected to Be $15,000

Question 111

Multiple Choice

Broadway Company produces and sells two models of calculators.The following monthly data are provided:  Standard  PremiumUnit selling price$100$150Unit variable manufacturing cost$60$90Unit variable selling and administrative cost$15$30Number of units produced and sold3,0001,000\begin{array}{lcc}&\text{ Standard } &\text{ Premium} \\ \text {Unit selling price}&\$ 100 & \$ 150 \\ \text {Unit variable manufacturing cost}&\$ 60 & \$ 90 \\\text {Unit variable selling and administrative cost}& \$ 15 & \$ 30\\ \text {Number of units produced and sold}& 3,000 & 1,000\end{array}

Total monthly fixed costs are expected to be $15,000.What is the break-even point in sales dollars at the expected sales mix? (Do not round intermediate calculations.)


A) $19,231
B) $43,478
C) $68,182
D) $64,286

Correct Answer:

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