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Question

Camden Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are:


M N O
Unit sales price...................................... $7 $4 $6
Unit variable costs...................................... 3 2 3

Total fixed costs are $340,000. The break-even point in sales dollars for the current sales mix is (round to the nearest thousand):
A. $ 20,000.
B. $289,000.
C. $400,000.
D. $629,000.
E. $740,000.

Answer

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