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What is the breakeven point in total units for acme

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Reference no: EM133130959

Question - Acme Soap Company makes two types of bars of soap: Pumice and Lavender. Data on these two products are as follows:

Pumice

Lavender

Annual Sales volume in units

80,000

120,000

Unit Sales Price

$2.50

$4.00

Unit Variable Cost

$1.00

$1.80

# of Machine hours to manufacture 100 bars

1.0

2.0

Fixed Costs incurred to manufacture both products are: $265,200.

Required - What is the breakeven point in total units for Acme, assuming the sales mix of Pumice and Lavender stay in the same proportions as stated in the table above?

Reference no: EM133130959

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