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:

Grain Beetles

A group of beetles known for infesting and feeding on stored grains and cereals.

Parasitic Relationship

A biological interaction where one organism, the parasite, lives on or in another organism, the host, causing it harm and benefiting from the nutrients of the host.

Climax-Pattern Model

A concept in ecology that describes the final stable community in a successional series, which remains relatively unchanged until disrupted by a major environmental change.

Species Diversity

The variety and abundance of different species within a given ecological community or ecosystem.