Question

Oriole Corporation sells two products, Standard and Supreme. Expected sales are 47000 Standard and 70500 Supreme. Standards
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Answer #1

Answer : "15750 "

Std.

Sup.

total

Sales mix

47000/(47000+70500)

70500/(47000+70500)

Sales mix

0.4

0.6

Contribution

30

60

Weighted Avg. Contri.

12

36

48

BEP, units = FC/WAC =

1890000/48 = 39375 units

Standard units at BEP =

39375*0.4 = 15750 units

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