Bramble Corp. sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and...

Bramble Corp. sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $ 150 and a selling price of $ 210. Q-Drive Plus has variable costs per unit of $ 165 and a selling price of $ 255. Bramble’s fixed costs are $ 729000. How many units of Q-Drive would be sold at the break-even point?

9000.

6300.

2700.

3645.

Expert Solution

Correct answer---2700

Working

	Q-Drive	Q drive plus	TOTAL

Product Mix	30%	70%	100.00%

Working		Q-Drive	Q drive plus	TOTAL
A	Revenues	$ 210.00	$ 255.00
B	Variable Cost	$ 150.00	$ 165.00
C = A - B	Contribution Margin	$ 60.00	$ 90.00
D	Product Mix	30.00%	70.00%	100.00%
E = C x D	Weighted Average Contribution Margin	$ 18.00	$ 63.00	$ 81.00

	Weighted Average Contribution Margin Ratio	8.6%
A	Total Fixed Cost	$ 7,29,000.00
B	Weighted Average Contribution Margin	$ 81.00
C = A/B	Multi Product Break Even point	9,000
C x 30%	Q-Drive	2,700
C x 70%	Q drive plus	6,300

ekkarill92 answered 2 years ago

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