Answer:
Break-even Point in units:
Product A : 12,000 units
Product B : 60,000 units
Product C : 48,000 units
Explanation:
Sales of products A, B and C are in the ratio:
$26,000 : $130,000 : $104,000
= 1 : 5 : 4
In other words, sales mix = 1:5:4
i.e., For every 1 units of A, 5 units of B are sold and 4 units of C are sold.
Contribution Margin of the bundle =
$3 * 1 unit + $2 * 5 units + $1* 4 units
= $3 + $10 + $4
= $17
Break-even point in bundles =
Total Fixed Cost ÷ Contribution Margin per bundles
= $204,000 ÷ $17
= 12,000 bundles
Break-even point in units :
Product 1: 12,000 * 1 = 12,000 units
Product 2: 12,000 * 5 = 60,000 units
Product 3: 12,000* 4 = 48,000 units
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