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Assume the following information for two products, Hawaii Fantasy and Hawaii Joy

ID: 2364102 • Letter: A

Question

Assume the following information for two products, Hawaii Fantasy and Hawaii Joy: Hawaii Fantasy: Sales Mix- 4 units, Selling price per unit- $15, Variable cost per unit- $9. Hawaii Joy: Sales Mix- 1 unit, Selling price per unit- $100, Variable cost per unit- $20. Fixed expenses total $475,800 per year. What is the breakeven point in units for each product? A) 18,300 units of Hawaii Fantasy and 18,300 units of Hawaii Joy. B) 18,300 units of Hawaii Fantasy and 4,575 units of Hawaii Joy. C) 4,575 units of Hawaii Fantasy and 18,300 units of Hawaii Joy. D) None of the above.

Explanation / Answer

D) None of the above.

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