Barkley Company sells two products, red cups and black mugs. Barkley has fixed costs of...
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Accounting
Barkley Company sells two products, red cups and black mugs. Barkley has fixed costs of $210,000. Barkley predicts that it will sell 5 red cups for every 2 black mugs in the next period. The unit contribution margins for red cups and black mugs are $2.80 and $3.50, respectively. What is the number of red cups and black cups respectively Barkley must sell to breakeven?
A.
50,000 red and 20,000 black
B.
150,000 red 33,333 black
C.
60,000 red and 75,000 black
D.
20,000 red and 50,000 black
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