The kenosha company has three product lines of beer mugslong dasha, b, and clong dashwith contribution margins of $ 5, $ 4, and $ 3, respectively. the president foresees sales of 175 comma 000 units in the coming period, consisting of 25 comma 000 units of a, 100 comma 000 units of b, and 50 comma 000 units of c. the company's fixed costs for the period are $ 351 comma 000. what is the company's breakeven point in units, assuming that the given sales mix is maintained?

break even point in units:

Explanation:

beer mugs          contribution margin         expected sales

a                                $5                                   25,000

b                                $4                                  100,000

c                                $3                                   50,000

fixed costs = $351,000

if the sales proportion remains the same, we can assume a bundle of products = 1a + 4b + 3c (1 for every 25,000 units) whose contribution margin = $5 + $16 + $9 = $30

break even point = fixed costs / bundle's contribution margin = $351,000 / $30 = 11,700 bundles

break even point in units:

a = 11,700

b = 11,700 x 4 = 46,800

c = 11,700 x 3 = 35,100