Information About the Harmon Company's Two Products Includes What Is the Total Monthly Sales Volume in Units Required

question 29

Multiple Choice

Information about the Harmon Company's two products includes: $\begin{array}{lrr} &\underline{\text { Product X}}& \underline{\text { Product Y }}\\\text { Unit selling price } & \$ 9.00 & \$ 9.00 \\\text { Unit variable costs: } & & \\\text { Manufacturing } & \$ 5.25 & \$ 6.75 \\\text { Selling } & .75&.75\\\text { Total } &\$ 6.00 & \$ 7.50 \\\end{array}$


$\begin{array}{l}\text { Monthly fixed costs are as follows: }\\\text { Manufacturing } & \$ 82,500 \\\text { Selling and administrative } & \$ 45,000\\ \text { Total}&\$127,500\end{array}$
What is the total monthly sales volume in units required to break even when the sales mix in units is 70 percent Product X and 30 percent Product Y?

• A)8,333 units
• B)16,667 units
• C)50,000 units
• D)56,667 units

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