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What are the break-even sales units for a month

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Reference no: EM133065141

Question - Hyman designs and manufactures gourmet chocolates which he sells via a local market. Details of his two products are as follows:

Product type:

Peanut Jelly (PJ)

Lemon Truffle (LT)

Selling price (excluding GST)

$4.50

$3.20

Variable costs as a % of sales

40%

35%

Average monthly sales volume (units)

80

150

The business has a monthly fixed cost of $400.

Required - What are the break-even sales units for a month?

A. 32 PJ and 53 LT.

B. 80 PJ and 150 LT.

C. 87 PJ and 87 LT.

D. 61 PJ and 113 LT.

Reference no: EM133065141

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