Question

Bella sells vacuums and shampooers. The vacuums each sell for $60 with variable costs of $20, and the shampooers each sell for $100 with variable costs of $60. The fixed costs for the store are $80,000. The shampooers make up 1,200 of the units sold, while the vacuums make up the other 2,800 of the units sold. What is Bella's breakeven point in units? 2,000 units 600 units 1,400 units 4,000 units

          Bella sells vacuums and shampooers. The vacuums each sell for $60 with variable costs of $20, and the shampooers each sell for $100 with variable costs of $60. The fixed costs for the store are $80,000. The shampooers make up 1,200 of the units sold, while the vacuums make up the other 2,800 of the units sold. What is Bella's breakeven point in units?

2,000 units
600 units
1,400 units
4,000 units

Bella sells vacuums and shampooers. The vacuums each sell for 60 with variable costs of20, and the shampooers each sell for 100 with variable costs of60. The fixed costs for the store are 80,000. The shampooers make up 1,200 of the units sold, while the vacuums make up the other 2,800 of the units sold. What is Bella's breakeven point in units?

2,000 units
600 units
1,400 units
4,000 units

Added by Shafaq Q.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Maria Dearborn

05/31/2024

Step 1

- The contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price per unit. - For vacuums: $60 (selling price) - $20 (variable cost) = $40 contribution margin per unit. - For shampooers: $100 (selling price) - $60 Show more…

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