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Sagot :
The correct answer is Sales of [tex]$40,000[/tex] for A, [tex]$20,000[/tex] for B.
Sales:
Lets consider 1 batch of production to contain [tex]4[/tex] units of A and [tex]1[/tex] unit B so as to maintain the product mix.
We will now first calculate the contribution from [tex]1[/tex] batch of production.
Contribution = Selling Price - Variable Cost
A and B
Selling Price [tex]50[/tex] and [tex]100[/tex]
Variable Cost [tex]20[/tex] and [tex]40[/tex]
Contribution [tex]30[/tex] and [tex]60[/tex]
Contribution per batch = Contribution of A * 4 + Contribution of B * 1 = [tex]30*4 + 60*1 = 180[/tex]
Total Fixed Cost = [tex]36000[/tex]
We know that Breakeven units = Total fixed cost / contribution per unit
So, Breakeven no. of batches [tex]= 36000 / 180 = 200[/tex] batches
Breakeven Sales of A = Breakeven no. of batches * units per batch * selling price per unit
[tex]= 200 * 4 * 50 = 40000[/tex]
Breakeven Sales of B = Breakeven no. of batches * units per batch * selling price per unit
[tex]= 200 * 1 * 100 = 20000[/tex]
Therefore, the correct answer is Option B - Sales of [tex]$40,000[/tex] for A, [tex]$20,000[/tex] for B.
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