Reference no: EM132540972

HKT Co. produces and sells two products, A and B. Revenue and cost data are shown below:

                                      A                       B

Product Mix                        20%              80%

Selling price per unit                $40               $20

Variable cost                          60%                40%

Total fixed costs      $179,200

Question 1: Which of the following statements is correct?

Group of answer choices

Option 1: The breakeven units are 2,800 for A and 11,200 for B.

Option 2: The breakeven units are 3,200 for A and 12,800 for B

Option 3: The breakeven units are 5,600 for A and 22,400 for B.

Option 4: The breakeven units are 1,400 for A and 5,600 for B.

Option 5: The breakeven units are 6,400 for A and 25,600 for B.