Question: Company J sells a product in two models. The basic model has a contribution margin per unit of $5. The deluxe model has a CM
Company J sells a product in two models. The basic model has a contribution margin per unit of $5. The deluxe model has a CM per unit of $10. Total fixed costs for the year are $100,000. Which of the following sales mixes can Company J sell to break even?
a.
Basic model: 8,000 units; deluxe model: 4,500 units
b.
Basic model: 7,500 units; deluxe model: 5,000 units
c.
Basic model: 7,700 units; deluxe model: 5,200 units
d.
Basic model: 12,000 units; deluxe model: 4,000 units
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