Reference no: EM132540972
HKT Co. produces and sells two products, A and B. Revenue and cost data are shown below:
A B
Product Mix 20% 80%
Selling price per unit $40 $20
Variable cost 60% 40%
Total fixed costs $179,200
Question 1: Which of the following statements is correct?
Group of answer choices
Option 1: The breakeven units are 2,800 for A and 11,200 for B.
Option 2: The breakeven units are 3,200 for A and 12,800 for B
Option 3: The breakeven units are 5,600 for A and 22,400 for B.
Option 4: The breakeven units are 1,400 for A and 5,600 for B.
Option 5: The breakeven units are 6,400 for A and 25,600 for B.