Answer the Following Questions Using the Information Below:
the Following $\quad \$ 16.00$

question 105

Multiple Choice

Answer the following questions using the information below:
The following information is for the Jeffries Corporation:
Product A: Revenue $\quad \$ 16.00$
Variable Cost $\quad \$ 12.00$
Product B: Revenue $\quad \$ 24.00$
Variable Cost $\quad \$ 16.00$
Total fixed costs
$\$ 75,000$
-What is the breakeven point,assuming the sales mix consists of three units of Product A and one unit of Product B?

• A) 10,000 units of A and 5,000 units of B
• B) 11,250 units of A and 3,750 units of B
• C) 12,000 units of A and 4,000 units of B
• D) 4,000 units of A and 12,000 units of B

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Definitions:

Risk

The exposure to potential financial loss or gain, often measured by the variability of returns.

Limited Liability Protection

A legal structure that shields a company's owners from being personally responsible for the company's debts or liabilities.

Corporate Form

A legal business structure recognized in many jurisdictions allowing the company to operate as a separate legal entity apart from its owners, providing limited liability and ease of ownership transfer.

Entrepreneurs

Individuals who create, launch, and manage new businesses, taking on most of the risks and reaping most of the rewards of the venture.