Question
In: Accounting
Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $41per unit...
Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $41per unit with variable costs of $40 per unit. Plaid models sell for $53
per unit with variable costs of $15 per unit. Total fixed costs for the company are $20,240. Mayfield Company typically sells three Blue models for every four
Plaid models. What is the breakeven point in total units? (Round any intermediary calculations to the nearest whole number.)
A. 12,891units
B. 133 units
C. 920 units
D. 131 units
Solutions
Expert Solution
| Blue | Plaid | ||
| Selling price | $ 41 | $ 53 | |
| less: Variable Cost | $ -40 | $ -15 | |
| Contribution Margin | $ 1 | $ 38 | |
| Let units | 3x | 4x | |
| Total Con margin | 3x | 152x | |
| 3x+152x-$20,240= | $ - | ||
| 155x= | $ 20,240 | ||
| x= | 131 | ||
| Blue= | 131*3 | 393 | |
| Plaid | 131*4 | 524 | |
| Total | 917 | ||
| R/off | 920 |
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