Multi-Product Breakeven Analysis Highland Manufacturing Company produces three products: A, B, and C. The unit selling price, unit variable cost, and total fixed costs are given below:

The management of the company wishes to determine what the sales mix of the three products should be. Currently two sales mixes are under consideration:

(a) equal quantities of each product \((2 A-2 B-2 C)\), and

(b) one-sixth of the units will be \(A\), one-third will be \(B\), and one-half will be \(C(1 A-2 B-3 C)\).
{Required:}
Calculate breakeven points (in units) for each sales mix.

Transcribed Image Text:

A B Unit selling price $10 $8 Unit variable price Total Fixed Costs 8 $1,000,000 5 $6 3