The Following Data Pertain to the Three Products Produced by Excellent

question 43

Multiple Choice

The following data pertain to the three products produced by Excellent Corporation: Fixed costs are $90,000 per month.

The sales mix of Excellent Corporation consists of 65% of Product A, 20% of Product B, and 15% of Product C.
What is the monthly break-even point for total units?

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Definitions:

Primarily Personal

This term typically pertains to expenses or activities that are mainly for personal benefit, and therefore, not deductible for tax purposes if related to business.

Net Loss

The result when a company's expenses exceed its revenues during a specific period, indicating negative profitability.

Schedule E

A form used by the IRS for reporting income and loss from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.