Crown Co Can Produce Two Types of Lamps, the Enlightner and and Foglighter

question 15

Multiple Choice

Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows:It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $90,000. Demand is high enough for either product to keep the plant operating at maximum capacity.
Assuming that sales mix in terms of units remains constant, what is the breakeven point in total units? (Round intermediate calculations to 2 decimal places and final answer to the nearest whole number.)

• A) 687.
• B) 711.
• C) 805.
• D) 945.
• E) 1,006.

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