Assume the Following Information for Two Products,Hawaii Fantasy and Hawaii

question 92

Multiple Choice

Assume the following information for two products,Hawaii Fantasy and Hawaii Joy.
$\begin{array}{lll}&\text { Hawaii Fantasy }&\text { Hawaii joy }\\\text { Sales mix } & 2 \text { units } & 1 \text { unit } \\\text { Selling price per unit } & \$ 15 & \$ 100 \\\text { Variable cost per unit } & \$ 10 & \$ 40\end{array}$
Fixed expenses total $490,000 per year.What is the breakeven point in units for each product?

• A) 4,575 units of Hawaii Fantasy and 18,300 units of Hawaii Joy
• B) 7,000 units of Hawaii Fantasy and 14,000 units of Hawaii Joy
• C) 18,300 units of Hawaii Fantasy and 4,575 units of Hawaii Joy
• D) 14,000 units of Hawaii Fantasy and 7,000 units of Hawaii Joy

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Definitions:

Chrysler

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A now-defunct American automobile company that was known for producing vehicles from 1954 until 1987.

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A landmark antitrust case in the United States in which the Aluminum Company of America (Alcoa) was found to have monopolized the aluminum industry through various means, leading to significant implications for antitrust law.

Rule of Reason

A legal doctrine used in US antitrust law that determines the legality of business practices based on their actual impact on market competition.