Answer:
The break even point is 505 units.
Explanation:
Alexis Incorporated sells two products, larges and smalls.
Larges sell for $94 per unit with variable costs of $62 per unit.
Smalls sell for $27 per unit with variable costs of $10 per unit.
Total fixed costs for the company are $14,000.
The contribution margin per unit for larges
= Sales - Variable costs
= $94 - $62
= $32
The contribution margin per unit for smalls
= Sales - Variable costs
= $27 - $10
= $17
At break even point the profits incurred is zero such that cost and revenue are equal.
67.14x + 7.71x = 44.28x + 2.85x + 14,000
74.85x = 47.13x + 14,000
x =
x = 505.05