FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of $64. Product B sells for $78 per unit, and has unit variable costs of $47. Currently, Friar sells three units of product B for every one unit of product A sold. Friar has fixed costs of $634,500. What is Friar's break-even point in units? Multiple Choice 13,500 units of A and 4,500 units of B 9,000 units of A and 9,000 units of B 4,500 units of A and 13,500 units of B 18,000 units of A and 18,000 units of B
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Transcribed Image Text:Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of $64. Product B sells for $78 per unit, and has unit variable costs of $47. Currently, Friar sells three units of product B for every one unit of product A sold. Friar has fixed costs of $634,500. What is Friar's break-even point in units? Multiple Choice 13,500 units of A and 4,500 units of B 9,000 units of A and 9,000 units of B 4,500 units of A and 13,500 units of B 18,000 units of A and 18,000 units of B
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Step 1: Introduce to break even point
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Step 2: Working for sales mix
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Step 3: Working for weighted average contribution margin per unit
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Step 4: Working for break even point
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