Determine the Breakeven Point in Units Based on the Following

question 142

Multiple Choice

Determine the breakeven point in units based on the following information: Assume a constant mix of 3 units of Small for every 1 unit of Large.Total fixed costs: $48,000

• A)4,800 units of Small and 1,600 units of Large.
• B)1,200 units of Small and 400 units of Large.
• C)1,600 units of Small and 4,800 units of Large.
• D)8,000 units of Small and 2,667 units of Large.
• E)1,600 units of Small and 1,600 units of Large.

---

Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded, leading to market stability.

Equilibrium Price

The market price at which the quantity of goods demanded equals the quantity of goods supplied, leading to a stable market condition.

Quantity Demanded

The total amount of a good or service consumers are willing and able to purchase at a given price.

Quantity Supplied

Quantity supplied refers to the amount of a good or service that producers are willing and able to sell at a given price over a specific period.