contestada

A single factory produces two different products during each half of the year with equivalent fixed cost; from January through June they produce Product A and from July through December they produce Product B. Product B costs three times as much to produce and the price of Product A is one third of Product B. The breakeven quantity of Product A as related to the breakeven quantity of product B is best represented by:

Respuesta :

michell96

The breakeven quantity of Product A as related to product be is 1/3.

The breakeven quantity refers to the minimum of units a company needs to sell to cover the costs that implied producing that good.

For example, if production costs are $1000 and each unit sale price is 10, the company will need to sell at least 100 units ($1000 / 10 = 100).

In the case of product A and B, it is known product A cost only 1/3 of product B. For example:

  • Product A: $100 (production cost).
  • Product B: $300 (production cost).

In this context, the breakeven quantity for product A will be a third of the one for product B.

Learn more about Economy in: https://brainly.com/question/951950

Otras preguntas