Question & Answer: Copper LLC sells cars and trucks. The unit sales for trucks were 100,000 and the cont…..

Copper LLC sells cars and trucks. The unit sales for trucks were 100,000 and the contribution margin was $200,000. For cars the unit sales were 120,000 and the contribution margin was $240,000. If fixed costs are $160,000, how many trucks are needed to breakeven: a. 32,000 b. 34,000 c. 36,000 d. None of the above

Expert Answer

None of the above

Break Even Point = FIxed Costs / Contribution per unit

= 160000 / 2

= 80000

Answer is none of the above

Particulars Truck Car
Contribution Margin 200000 240000
Unit Sales 100000 120000
Per Unit Contribution (A)           2.00           2.00
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