The Following Data Pertain to the Three Products Produced by Rona

question 64

Multiple Choice

The following data pertain to the three products produced by Rona Corporation: $$\begin{array} { l r r r } & \mathrm { A } & \mathrm { B } & \mathrm { C } \\ \text { Selling price per unit }& \$ 5.00 & \$ 7.00 & \$ 6.00 \\\text { Variable costs per unit } & 4.00 & 5.00 & 3.00 \\\text { Contribution margin per unit }& \$ 1.00 & \$ 2.00 & \$ 3.00\end{array}$$ Fixed costs are $90,000 per month. Of all units sold,60% are Product A,30% are Product B,and 10% are Product C.
What is the monthly break-even point for total units?

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Definitions:

Decrease Of

Refers to the reduction in the amount, quantity, or extent of something.

Percent Less

A term used to indicate a reduction or discount applied to a price or value, expressed as a percentage of the original amount.

Percent More

A comparative measure indicating how much higher one quantity is than another, expressed as a percentage.

Percent Change

The measure of the degree of change of a quantity, expressed as a percentage.