Gabe Industries Sells Two Products, Basic Models and Deluxe Models

question 266

Multiple Choice

Gabe Industries sells two products, Basic models and Deluxe models. Basic models sell for $41 per unit with variable costs of $15 per unit. Deluxe models sell for $45 per unit with variable costs of $45 per unit. Total fixed costs for the company are $1310.4. Gabe Industries typically sells four Basic models for every Deluxe model. What is the breakeven point in total units?

• A)63 units
• B)50 units
• C)32 units
• D)29 units

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Definitions:

Clotting Disorder

A medical condition where the blood does not clot properly, causing excessive bleeding or clotting.

Hematocrit

A blood test measurement indicating the percentage of red blood cells in a given volume of blood.

Erythrocyte Sedimentation Rate

A diagnostic blood examination that determines the rate at which red blood cells descend to the bottom of a test tube, a process that signals the presence of inflammation within the body.

Anemia

A condition in which there is a deficiency of red cells or of hemoglobin in the blood, resulting in pallor and weariness.