Answer:
The numbers of product A must be sold to break-even are 800 units
Explanation:
The break-even point is calculated by using following formula:
Break-even point in units = Fixed expense/(Selling price per unit-Variable expense per unit) = Fixed expense/weighted-average contribution margin per unit = $400,000/$100 = $4,000 units
Elise Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%.
The numbers of product A must be sold to break-even = $4,000 x 20% = 800 units
