Break-even point in units sales


Mark Corporation produces two models of calculators. The Business model sells for $60, and the Math model sells for $40. The variable expenses are given below:

Business Model, Variable production costs per unit $15,and Variable selling and admin expenses per unit $9.

Math Model, Variable production costs per unit $16,and Variable selling and admin expenses per unit $6.


The fixed expenses are $75,000 per month. The expected monthly sales of each model are: Business, 1,000 units; Math, 500 units.

The break-even point in units sales for the expected sales mix is closest to:

A. 833 of each product

B. 1,667 Business Model and 833 Math Model

C. 1,667 of each product

D. 833 Business Model and 1,667 Math Model

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Accounting Basics: Break-even point in units sales
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