Broadway Company Produces and Sells Two Models of Calculators Total Monthly Fixed Costs Are Expected to Be $15,000

question 71

Multiple Choice

Broadway Company produces and sells two models of calculators.The following monthly data are provided: $\begin{array}{|l|l|r|lr}\hline & {\text { Standard }} & {\text { Premium }} \\\hline \text { Unit selling price } & \$ 100 & \$ 150 \\\hline \text { Unit variable manufacturing cost } & \$ 60 & \$ 90 \\\hline \text { Unit variable selling and } \\\text { administrative cost } & \$ 15 & \$ 30 \\\hline \\\text { Number of units produced and sold } & 3,000 & 1,000 \\\hline\end{array}$
Total monthly fixed costs are expected to be $15,000.What is the break-even point in sales dollars at the expected sales mix? (Do not round your intermediate calculations. )

• A) $19,231
• B) $43,478
• C) $68,182
• D) $64,286

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Definitions:

Henry Luce

An influential American magazine magnate who co-founded Time, Life, Fortune, and Sports Illustrated, shaping 20th-century media.

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A term popularized by Time publisher Henry Luce in 1941, describing the 20th century as a period dominated by the United States in political, economic, and cultural influence worldwide.

Postwar Prosperity

The period of economic growth and widespread welfare experienced by many countries following the end of World War II.

Free Enterprise

An economic system where private businesses operate in competition and largely free of state control, emphasizing the importance of a market economy.