Idol Creations Produces Two Models of Keyboards, Compact and Deluxe

question 145

Multiple Choice

Idol Creations produces two models of keyboards, compact and deluxe.Information regarding the products is summarized for the month of April in the following table: $\begin{array}{lrrr}&\text { Compact }&\text { Deluxe }&\text { Total }\\\text { Number of units } & 600 & 400 & 1,000 \\\hline \text { Sales } & \$ 48,000 & \$ 36,000 & \$ 84,000 \\\text { Variable costs } & 15,000 & 12,000 & 27,000 \\\text { Fixed costs } & 21,000 & 20,000 & 41,000 \\\text { Profit } & \$ 12,000 & \$ 4,000 & \$ 16,000\\\text { Profit per unit }&\$20.00&\$10.00\end{array}$ If the company's weighted average contribution margin ratio is 67.86%, and the weighted average contribution margin per unit is $57.00, how much will Idol Creation's total sales be at break-even?

• A)$60,419
• B)$122,281
• C)$68,000
• D)$60,552

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Definitions:

Issuers

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SEC

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