Compute the break-even point in units using this method

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Reference no: EM132872802

Question - A company offers three products, A, B, C

The current budget for the upcoming accounting period is presented below, by product:

 

A

B

C

# of units

18

12

30

Selling price per unit ($)

75

50

60

Variable cost per unit ($)

25

20

15

Fixed costs (total $)

500

360

900

There is a different customer market for each of these products.

Fixed costs reflect product-specific machinery.

Required -

1. Identify which of the two methods to compute the break-even point best suits this scenario.

2. Describe why the method you identified in (1) best suits this scenario.

3. Compute the break-even point in units using this method.

Reference no: EM132872802

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