Zed Company Sells Two Kinds of Mainframe Computer Power Supplies

question 32

Multiple Choice

Zed Company sells two kinds of mainframe computer power supplies.The company projected the following cost information for the two products: $\begin{array}{lrr}&\text { Standard } & \text { Heavy-Duty } \\&\text { Supply } & \text { Supply }\\ \text { Unit selling price} &\$250&\$120\\ \text { Unit variable cost} &\$110&\$50\\ \text { Number of units produced and sold } &7,000&3,000\end{array}$
Assume that total fixed costs are $428,400.How many units of the standard supply unit would be included in the total number of units required to break even with the projected sales mix? (Round your answer to the nearest whole unit)

• A) 3,600 units
• B) 2,520 units
• C) 1,080 units
• D) 2,040 units