How Many Units of Micro Must Be Sold at the Breakeven

question 10

Multiple Choice

How many units of Micro must be sold at the breakeven point? Diamantine has the following unit and mix data:
$$\begin{array} { | l | c | c | c | } \hline & \text { Micro } & \text { Nano } & \text { Total } \\\hline \text { Urit Sales Price } & \$ 5 & \$ 4 & \\\hline \text { Unit Contribution Margin } & 0.75 & 1.20 & \\\hline \text { Sales Mix } \$ & \mathbf { 8 0 \% } & \mathbf { 2 0 \% } & \\\hline \text { Fixed Costs } & & & \$ 84,000 \\\hline \text { Target Profit } & & & \$ 42,000 \\\hline\end{array}$$

• A) 100,000
• B) 80,000
• C) 20,000
• D) 40 615

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