Question: Big Mikes make nuts in two sizes: Medium and Large. The full year information for 2018 is listed below Medium Large Units sold 18000 4500

Big Mikes make nuts in two sizes: Medium and Large. The full year information for 2018 is listed below

Medium Large
Units sold 18000 4500
fixed costs 320,000 80,000
selling price per unit 80 140
variable cost per unit 65 100

The fixed costs are $400,ooo are allocated to the two nuts based on the volume. If we assume the sales mix and costs for 2019 did not change at all; how many medium units will need to be sold for Big Mike's to break even. Will it be 21,333; 16,000; 2,000 or 21,334?

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