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:

Floating-Rate Debt

Debt securities with interest rates that reset periodically, based on a benchmark interest rate or index, thus providing protection against interest rate fluctuations.

Interest Rate Risk

The potential for investment losses that result from a change in interest rates, affecting debt instruments like bonds inversely to their price.

Investors

Investors are individuals or institutions that allocate capital with the expectation of receiving financial returns.

Maple Bonds

Foreign corporate or foreign government bonds issued in Canadian dollars to Canadian investors. Because maples are denominated in Canadian dollars, there is no currency or foreign interest rate risk.