Christine enterprises sells two products, larges and smalls. larges sell for $120 per unit with variable costs of $80 per unit. smalls sell for $30 per unit with variable costs of $10 per unit. total fixed costs for the company are $40,000. christine enterprises typically sells three larges for every two smalls. what is the breakeven point in total units?

The breakeven point in total units is 1,250 consisting of 750 Larges and 500 Smalls

Explanation:

Denote A is the break-even point in unit for Larges;

As every three sales of Larges will follow with two sales Smalls, 2xA/3 will be the break-even point in unit for Smalls.

Margin per unit for Larges = $120 - $80 =$40

Margin per unit for Smalls = $30 - $10 =$20

The breakeven point in total units is the point where the total sales of Larges and Smalls will create a break-even for the Enterpises which means the margin generating will be enough for/equal to fixed cost covering.

From that, We have the formular:

Fixed cost = ( Margin per unit for Larges x Unit of Larges sold at breakeven + Margin per unit for Smalls x Unit of Smalls sold at breakeven) <=> 40,000 = 40 x A + 20 x 2 x A/3 <=> 40,000 = 160 x A/ 3 <=> A = 40,000 x 3 / 160 = 750;

=> Break even point in unit for Larges is 750, Break even point in unit for Smalls is 2x750/3 = 500

=> Total breakeven point in units = 750 + 500 = 1,250.

the answer is either c or b, i cant be to sure tho.