Assume the Following Facts for Two Products,Zip and Zap If Total Fixed Costs Are $132,000,the Break-Even Point in Units

question 146

Multiple Choice

Assume the following facts for two products,Zip and Zap:
$\begin{array}{ll}&zip&zap\\\text { Sales mix } & 3 \text { units }& 1 \text { units } \\\text { Selling price per unit } & \$ 21.00&\$28.00 \\\text { Variable costs per unit } & \$ 14.00&\$16.00\end{array}$
If total fixed costs are $132,000,the break-even point in units would be ________.

• A) 4,000 units of Zip and 12,000 units of Zap
• B) 1,200 units of Zip and 400 units of Zap
• C) 12,000 units of Zip and 4,000 units of Zap
• D) 8,400 units of Zip and 2,800 units of Zap

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Definitions:

Planning

The process of defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.

Business Plan

A strategic blueprint that outlines a company's vision, goals, target market, financial projections, and operational plans.

Business Success

The achievement of desired financial and operational goals in a business, often marked by profits, growth, and market share.

Planning

The act of defining a strategy or direction and making decisions on allocating resources to pursue this strategy.