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The firm Prussian Clausewitz produces three products: Blücher, Napoleon, and Wellington. These three products are sold...

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Accounting

The firm Prussian Clausewitz produces three products: Blücher,Napoleon, and Wellington. These three products are sold at a salesmix of 1:3:2, respectively.

BlücherNapoleonWellington
Price (per unit)$5,000$18,000$15,000
Variable Cost per Unit$4,000$5,000$5,000

The firm has $6,000,000 in fixed costs. How many Napoleon unitsmust the firm sell at breakeven (round up to nearest unit ifnecessary)?

Selected Answer:d.

462 Napoleon units.

Answers:a.

100 Napoleon units.

b.

1,385 Napoleon units.

c.

300 Napoleon units.

d.

462 Napoleon units.

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