Use the Following Information for Items
Brad Sherwood Corporation $\text { Per-unit data on the two products is presented blow: }$

question 15

Multiple Choice

Use the following information for items
Brad Sherwood Corporation sells two types of computers; one is designed for audio applications and the other for video applications.Sherwood incurs $300,125 in fixed costs.
$\text { Per-unit data on the two products is presented blow: }$
$\begin{array}{llcc} \underline{\text { Unit data } } &\underline{\text { Audio computer } }&\underline{ \text { Video computer }}\\ \text {Selling price } &\$1,500&\$1,750\\ \text { Variable costs } &\underline{1,100}&\underline{1,200}\\ \text { Contribution margin }& \underline{\$400}&\underline{\$550}\\ \text { Salses mix } &75\%&25\%\\\end{array}$

-How many audio computers will be sold at the break-even point?

• A)477
• B)172
• C)515
• D)158

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Definitions:

Alternative Financing Plans

Different strategies or options available for securing funds needed for business operations or expansion.

Earnings Per Share

A financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Journal Entry

The record of a financial transaction in the journal, detailing the accounts and amounts affected.

Convertible Bond

A corporate bond that can be converted into a predetermined number of shares of the issuing company's stock at certain times during its life, usually at the discretion of the bondholder.