Assume That Bisque Co

question 53

Multiple Choice

Assume that Bisque Co.sold 12,000 units of Product A and 18,000 units of Product B in the last year.The unit contribution margins for Products A and B are $10 and $20 respectively.Bisque has fixed costs of $420,000.The break-even point in units is:

• A) 26,250 units.
• B) 25,000 units.
• C) 18,500 units.
• D) 16,750 units.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the financial health of a company's core activities.

List Price

The published price of a product or service, often suggested by the manufacturer or service provider, before any discounts or negotiations.

Standard Amount

A pre-determined or fixed quantity used as a benchmark, reference, or norm for measurements, production, or financial assessments.

Net Worth

The total value of an individual's or entity's assets minus their liabilities; a measure of financial health.