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:

Journal Entry

A record in accounting that represents a transaction where debit and credit balance totals are equal.

Cash/Short-Term Securities

Liquid assets that include currency on hand and demand deposits, as well as investments with maturities of three months or less at the time of acquisition.

Fair Values

The compensation received for relinquishing an asset or the expenditure to assign a liability in a neat transaction among market stakeholders at the time of determining value.

Purchase

The act of acquiring goods or services in exchange for money, representing a financial transaction between buyer and seller.