Harding Corporation Sells Two Products, Standard and Supreme

question 117

Multiple Choice

Harding Corporation sells two products, Standard and Supreme.Expected sales are 40,000 Standard and 60,000 Supreme.Standard's unit contribution margin is $30 and Supreme's is $60.Fixed expenses are $1,800,000.How many Standard units would Harding sell at the break-even point?

• A)15,000
• B)20,000
• C)22,500
• D)40,000

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Definitions:

Product Measurements

The quantifiable attributes or characteristics of a product, used to determine its quality, size, or performance.

Walter Shewhart

A pioneering American physicist known for his work in statistical process control and creating the control chart method.

Control Chart

A statistical tool used to monitor, control, and improve the quality of processes by identifying any variations.

Horizontal Lines

Lines that run parallel to the horizon or ground level, often used in charts, graphs, and design to denote stability or a baseline.