Smuthers Company manufactures and sells three products. Selling price and variable cost data for the models are as follows:
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| Yellow | Blue | Red | |
| Unit selling price | $36 | 840 | $44 |
| Unit variable costs | 26 | 30 | 36 |
| Contribution margin | $10 | ||
| Sales mix | 1 | 2 | 3 |
Instructions
(a) Compute the break-even point in units, assuming the total fixed costs are $320,004.
(b) Prove the correctness of your answer.
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