Answer:
The correct answer is A.
Explanation:
Giving the following information:
The weighted-average unit contribution margin of $20.
Expected sales for Pittsburg Steel are 40,000 Standard and 60,000 Supreme.
Fixed expenses are $1,800,000
First, we need to calculate the break-even point in units for the whole company.
Break-even point (units)= Total fixed costs / Weighted average contribution margin ratio
Break-even point (units)= 1,800,000/20
Break-even point (units)=90,000 units
<u>Now, for each product:</u>
Standard= (40,000/100,000)*90,000= 36,000 units
Supreme= (60,000/100,000)*90,000= 54,000 units
