Information About the Harmonious Company's Two Products Includes What Is the Total Monthly Sales Volume in Units Required

question 121

Multiple Choice

Information about the Harmonious Company's two products includes: $\begin{array}{llr}&\text { Product } X & \text { Product } Y\\\text { Unit selling price } & \$ 11.25 & \$ 11.25 \\\text { Unit variable costs: } \\\text { Manufacturing }& \$ 5.25 & \$ 6.75 \\\text { Selling } & .75& .75 \\\text { Total }&\$6.00 &\$7.50\\\end{array}$
$\begin{array}{lr}\text { Monthly fixed costs are as follows: } & \\\text { Manufacturing } & \$ 82,500 \\\text { Selling and administrative } & 45,000 \\\text { Total } & \$ 127,500\end{array}$
What is the total monthly sales volume in units required to break even when the sales mix in units is 70 percent Product X and 30 percent Product Y?

• A)4,333 units
• B)26,563 units
• C)8,667 units
• D)28,667 units

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Definitions:

Statement of Cash Flows

A financial report that consolidates information about all cash received and expended by a business.

Cash Receipts

The collection of money, such as income from sales or assets being liquidated, recorded during an accounting period.

Cash Payments

Money transactions made to settle obligations or purchases.

CPAs

Certified Public Accountants, professionals who have met the education and licensing requirements to offer accounting services to the public, including audits and financial planning.