The Following Data Pertain to the Three Products Produced by Alberts

question 42

Multiple Choice

The following data pertain to the three products produced by Alberts Ltd.: Fixed costs are £90,000 per month. Sixty per cent of all units sold are Product A, 30 per cent are Product B, and 10 per cent are Product C.
What is the monthly break-even point for total units?

• A) 45,000 units
• B) 36,000 units
• C) 60,000 units
• D) 180,000 units

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Definitions:

Accounts Payable Period

The average duration a company takes to pay off its suppliers and creditors, usually measured in days.

Accounts Receivable Period

The mean duration required by a company to receive payments from clients following a sale transaction.

Payables Period

The average time it takes for a company to pay its invoices from suppliers, indicating the company's payment habits and cash flow management.

Credit Sales

Credit sales are transactions where the customer purchases goods or services on credit, agreeing to pay the supplier at a later date.