The Following Data Pertain to the Three Products Produced by Rona

question 57

Multiple Choice

The following data pertain to the three products produced by Rona Corporation: $\begin{array}{lrrr}&\underline{A} & \underline{B} &\underline{C}\\\text { Sales price per unit } & \$ 5.00 & \$ 7.00 & \$ 6.00 \\\text { Variable costs per unit } & \underline{4.00} & \underline{5.00} & \underline{3.00} \\\text { Contribution margin per unit } & \underline{\$ 1.00} & \underline{\underline{\$ 2.00}} & \underline{\underline{\$ 3.00}}\end{array}$
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?

• A) 36,000 units
• B) 45,000 units
• C) 60,000 units
• D) 180,000 units

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