The firm Prussian Clausewitz produces three products: Blücher,
Napoleon, and Wellington. These three products are sold...
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Accounting
The firm Prussian Clausewitz produces three products: Blücher,Napoleon, and Wellington. These three products are sold at a salesmix of 1:3:2, respectively.
Blücher
Napoleon
Wellington
Price (per unit)
$5,000
$18,000
$15,000
Variable Cost per Unit
$4,000
$5,000
$5,000
The firm has $6,000,000 in fixed costs. How many Napoleon unitsmust the firm sell at breakeven (round up to nearest unit ifnecessary)?
Selected Answer:
d.
462 Napoleon units.
Answers:
a.
100 Napoleon units.
b.
1,385 Napoleon units.
c.
300 Napoleon units.
d.
462 Napoleon units.
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