Assuming a Constant Mix of 3 Units of Small for Every

question 129

Multiple Choice

Assuming a constant mix of 3 units of Small for every 1 unit of Large. Total fixed costs: $48,000
The break-even point in units would be

• 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:

Sales

Transactions between a seller and a buyer where the seller provides goods, services, or assets in exchange for money or other compensation.

Break-even Point

The point at which total cost and total revenue are equal, meaning no net loss or gain, and one has "broken even".

Mixed Cost

A type of cost that contains both fixed and variable components and changes in total with the level of activity.

Rental Cost

The expense incurred for using a property, equipment, or other asset under a lease agreement for a specified period.