Gabe industries sells two products, basic models and deluxe models. basic models sell for $ 45 per unit with variable costs of $ 35 per unit. deluxe models sell for $ 49 per unit with variable costs of $ 40 per unit. total fixed costs for the company are $ 617. gabe industries typically sells four basic models for every deluxe model. what is the breakeven point for basic models and deluxe models? (round any intermediary calculations to the nearest cent and your final answers to the nearest whole unit.)a. 35 units of basic; 46 units of deluxe b. 11 units of basic; 55 units of deluxe c. 55 units of basic; 11 units of deluxe d. 46 units of basic; 35 units of deluxe

The answer is: 50 basic units and 13 deluxe units

Explanation:

                                     Basic model            Deluxe model               Total

Sales price                       $45                           $49

Variable costs                  $35                           $40

Contribution margin        $10                            $9

× Sales Mix                        4                                 1                                 5

Total contribution m.       $40                           $9                              $49

Weighted contribution margin = total contribution margin / units = $49 / 5

Weighted contribution margin = $9.8

Break even point  = total fixed costs / weighted contribution margin

Break even point = $617 / $9.8 = 62.96 units ≈ 63 units

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