What are the breakeven units per product

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Reference no: EM131259821

Lululemon makes two types of yoga mats. Data for the company’s activities during a typical month are as follows:

Thin Mat Model Thick Mat Model

Sales Units 45,000 65,000

Selling Price per unit $30 $40

Variable Expense per unit $10 $15

Lululemon’s fixed costs are $352,500. Lululemon is thinking about of introducing a new mat called the Master Mat which will sell for $75 and will cost $65 (per unit). After the Master Mat is manufactured the sales mix is expected to be 3:3:4 for the three mats (Thin;Thick;Master). The addition of the Master model will increase Fixed Costs by $85,000. There are no inventories in the beginning or ending of the period.

What are the breakeven units per product?

Thin Mat Thick Mat Master Mat

A. 7,500 7,500 10,000

B. 8,000 8,500 8,000

C. 9,000 6,000 10,000

D. 6,500 6,500 12,000

E. None of the above

Reference no: EM131259821

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