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valentina_108 [34]
3 years ago
14

Elise Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%. Fixed costs total $400,000 and

the weighted-average contribution margin is $100. How many units of product A must be sold to break-even? 20,000. None of the answers is correct. 4,000. 800. Cannot be determined based on the information presented.
Business
1 answer:
Aneli [31]3 years ago
6 0

Answer:

800 units of product A must be sold for break-even

Explanation:

Given, weighted-average contribution is $100.

Total break-even units = Total fixed cost  / Weighted-average contribution

Total break-even units = $400,000  / $100

Total break-even units = 4,000 units

Product A break-even = 4,000 x 20%

Product A break-even = (800 units)

Hence, the correct answer is 800 units.

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