UP Forklifts Sells Two Products, Large Forklifts and Small Forklifts

question 36

Multiple Choice

UP Forklifts sells two products, large forklifts and small forklifts. A large forklift sells for $80,000 per unit with variable costs of $20,000 per unit. Small forklifts sell for $55,000 per unit with variable costs of $12,000 per unit. Total fixed costs for the company are $3,944,000. UP Forklifts typically sells one large forklift for every four smalls. What is the breakeven point in total units?

• A)85 units
• B)176 units
• C)38 units
• D)24 units

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Definitions:

Endoderm

The innermost layer of the early embryo, which gives rise to the lining of the digestive and respiratory systems, among other structures.

Neuroectoderm

Part of the ectoderm of an embryo giving rise to the brain and spinal cord.

Postganglionic Autonomic Neurons

Neurons that transmit signals from autonomic ganglia to target organs, involved in the regulation of involuntary bodily functions.

Posterior Pituitary

is the rear part of the pituitary gland; it stores and releases antidiuretic hormone (ADH) and oxytocin, which are produced in the hypothalamus.