The HoltTec Company Manufactures Two Products The Company Expects Fixed Costs to Be $192,000

question 99

Essay

The HoltTec Company manufactures two products. Information about the two product lines for the year is as follows: $\begin{array}{lcc}\text { Model } &\text { Basic }&\text { Deluxe Model }\\\text { Sales price per unit } & \$ 70 & \$ 100 \\\text { Variable costs per unit } & \underline{30} & \underline{40} \\\text { Contribution margin per unit } & \underline{\$ 40} &{\underline{\$ 60}}\end{array}$ The company expects fixed costs to be $192,000. The firm expects 60% of its sales (in units) to be Basic Model.
Required: Calculate the break-even point in units for both Basic Model and Deluxe Model.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, providing limited liability protection to its shareholders.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.

Dissolves

To formally end or terminate something, such as a contractual agreement or a business entity like a corporation.

Corporation

A legal entity that is separate from its owners, with an independent existence that allows it to own property, enter contracts, and be liable for its actions.