Question:
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
|
Math
|
|
|
Model
|
Model
|
|
Variable production costs per unit
|
$15
|
$16
|
|
Variable selling and administrative expenses per unit
|
$9
|
$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 for the expected sales mix is (round to nearest whole unit):
A) 833 of each
B) 1,667 Business and 833 Math
C) 1,667 of each
D) 833 Business and 1,667 Math