Question 174151
To compute the break-even point for a company: 
Sales – Variable Costs = Contribution Margin 
Contribution Margin – Fixed Costs = Net Income (which should be 0 to calculate the break-even point
:
contribution margin -15000 must equal zero
:
CM-15000=0......so CM=15000
:
we are working backward here so now
:
Sales(S)-VC=CM(15000)
lets call the number of standard units sold x
lets call the number of premium units sold y 
Sales-VC(standard)+Sales-VC(premium)=15000
:
100x-75x+150y-100y=15000
:
25x+50y=15000.....eq 1
:
according to the sales mix ration of x to y is $1000 to $2000
:
{{{x/y=1000/2000}}} 
:
1000y=2000x--->x=1/2y.....eq 2
:
take x's value from eq 2 and plug it into eq 1
:
25(y/2)+50y=15000
:
25y+100y=30000... multiplied all terms by 2
:
125y=30000
:
y=240
:
x=1/2(240)=120
:
so to figure out total sales 
:
{{{highlight((120)+150(240)=12000+36000=48000)}}}to break even
:
C is your answer