Question

EZ Carry Corp. is the maker of high quality golf bags. The company currently has three different lines of bags, which it sells to sporting goods stores and golf shops throughout the world. EZ Carry sells a constant mix of 4 small bags for each medium-sized bag and 5 medium bags for each large-sized bag. Total fixed costs for the year are expected to be $2,027,562. (Note: round all decimals to three places; round final answers up to nearest whole number.) Small Medium Large Selling price per bag$100 $150 $250 Variable cost per bag$60 $95 $160 The breakeven point in units (for the year) would be:Multiple Choice32,400 small; 8,100 medium; 1,620 large.34,808 small; 8,702 medium; 1,740 large.37,010 small; 9,250 medium; 1,850 large.38,505 small; 9,625 medium; 1,925 large.

Answer 1

Option B is correct348058 small,8702 medium,1740 large

Ratio	20:05:01
Fixed cost	2,027,562
	Small	Meduim	Large
Sale price	100	150	250
Variable cost	60	95	160
Contribution	40	55	90
Ratio	20	5	1
Contribution Per unit x 20:5:1	30.77	10.58	3.46
Total Of Three Contributions	44.81
Break even(units)(2027562/45)	45250
	Small	Meduim	Large
Break even(units)(20:5:1)	34808	8702	1740

Explanation

In above we have calculated average contribution by multiplying per unit contribution of each with its ratio for ex 40*20/26=30.77.then that average contribution is used to calculate break even units total then total units are divided in to ratio20:5:1.

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