Lakeside Has Gathered the Following Data in Order to Calculate

question 20

Multiple Choice

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: $$\begin{array} { r r r r } & \text { Unit Salas Price } & \text { Unit Variable Costs } & \text { Unit Sales } \\\text { Product A } & \$ 150 & \$ 100 & 8,000 \\\text { Product B } & 100 & 60 & 2,000\end{array}$$
Fixed costs are $480,000.
The weighted-average breakeven point is

• A) 11,429 units.
• B) 10,000 units.
• C) 5,333 units.
• D) 10,667 units.

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Definitions:

Economic Profits

The margin by which a firm's total sales exceed its complete set of expenses, both overt and covert.

Labor

Human effort, either physical or mental, used in the production of goods and services.

Capital

Financial assets or the financial value of assets, such as cash and buildings, used by a business to produce goods or services.