SOLUTION: Can someone please help me with this problem: The company's total fixed costs are expected to be $280,000.Based on the information, what is the combined number of units of the t

Question 174211: Can someone please help me with this problem:
The company's total fixed costs are expected to be $280,000.Based on the information, what is the combined number of units of the two products that would be required to breakeven (round your answer to the nearest whole unit)
Unit selling price: Canister Bag = $250 ; Tote Bag = $120
Unit variable cost: Canister Bag = $110 ; Tote Bag = $80
Number of units produced and sold: Canister Bag = 6,000 ; Tote Bag = 4,000
a. 1,556 units
b. 2,714 units
c. 2,800 units
d. None of the above
Answer by Mathtut(3670) (Show Source): You can put this solution on YOUR website!
Unit selling price: Canister Bag = $250 ; Tote Bag = $120
Unit variable cost: Canister Bag = $110 ; Tote Bag = $80
Number of units produced and sold: Canister Bag = 6,000 ; Tote Bag = 4,000
:
sales-v.costs=contribution margin
:
cm-fixed costs=zero for breakeven
:
cm-280000=0
:
cm=280000
let x and y be the number of units of the canister and tote bags respectively
:
sales-v.costs=contribution margin(cm)
:
250x-110x+120y-80y=280000
:
140x+40y=280000.....eq 1
:
ratio of --->6000y=4000x--->y=4000x/6000=2x/3....eq 2
:
take y's value eq 2 and plug it into eq 1
:
140x+40(2x/3)=280000
:
140x+80x/3=280000
:
420x+80x=840000
:
500x=840000
:

:
so total units to break even is 1680+1120=2800 units
:
answer is C

RELATED QUESTIONS
Can someone please, please help me with this problem: Barkley Company has a... (answered by Mathtut)

Can someone please help me with this problem: The monthly data are provided: Unit... (answered by Mathtut)

I need help with this problem thanks: The costs of doing business for a company can be... (answered by jim_thompson5910)

Can someone please, please help me with this problem: Zoro, Inc produces a product... (answered by gonzo)

I am using the expected value formula for this and am not solving it properly, can... (answered by ikleyn)

Please help me with this word problem A surfboard company has fixed costs of $300 per... (answered by uma)

hi can you please, guide me on how to solve this problem please: i am not sure how to set (answered by lwsshak3)

The Paduka Shoe Company sells five different styles of ladies chappals with identical... (answered by ikleyn)