Reference no: EM132537812
A company manufactures two products. Information about the two product lines for the current year is as follows:
Product A
Selling price per unit $90
Variable costs per unit $50
Product B
Selling price per unit $120
Variable costs per unit $60
Question 1: The company expects fixed costs to be $70,000. Calculate the break-even quantity of each product when the sales mix is 2:1.
Option A. 1,145 units, 572 units
Option B. 1,250 units, 625 units
Option C. 1,110 units, 555 units
Option D. 1,000 units, 500 units