From the Information Below,calculate the Break-Even Number of Units for Each

question 51

Multiple Choice

From the information below,calculate the break-even number of units for each product.
$\begin{array}{|l|r|r|r|}\hline & \text{ Product X } & \text{ Product \( Y \) } & \text{ Product Z } \\\hline\text{ Contribution margin} &\$ 10.00 & \$ 20.00 &\$ 40.00 \\\hline\text{ Sales Mix }& 50 \% &25 \%& 25 \% \\\hline\text{ Fixed costs\$ 15000} & & & \\\hline\end{array}$

• A) X: 7500; Y: 3750; Z: 3750.
• B) X: 1875; Y: 1875; Z: 3750.
• C) X: 3750; Y: 1875; Z: 1875.
• D) X: 3750; Y: 3750; Z: 7500.

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Definitions:

Intercept

A term in mathematics and economics indicating the value where a function or line crosses an axis on a graph.

Budget Line

A budget line represents the combinations of two goods that a consumer can purchase with a given income and prices, illustrating the trade-off between the two goods.

Risk-free Asset

A Risk-free Asset is an investment with a certain return, with no risk of financial loss, often exemplified by government bonds.

Risky Asset

An investment with a significant degree of uncertainty in its future payoffs, including the potential for losing some or all of the original investment.