Question

# 8) The following information is for the Jeffries Corporation: Product A: Revenue $16.00 Variable Cost $12.00

Product B: Revenue $24.00 Variable Cost $16.00 Total fixed costs $75,000 a) What is the break-even point, assuming the sales mix consists of three units of Product A and one unit of Product B? A) 10,000 units of A and 5,000 units of B B) 3,750 units of A and 3,750 units of B C) 12,000 units of A and 4,000 units of B D) 18,750 units of A and 6,250 units of B E) 11,250 units of A and 3,750 units of B b) What is the operating income, assuming actual sales total 25,000 units, and the sales mix is three units of Product A and one unit of Product B? A) $300,000 B) $60,000 C) $225,000 D) $50,000 E) $75,000 c) If the sales mix shifts to four units of Product A and one unit of Product B, then the bundled contribution margin will be A) $30 B) $16 C) $20 D) $12 E) $24 d) If the sales mix shifts to four units of Product A and one unit of Product B, then the break-even point will A) increase. B) stay the same. C) decrease. D) decrease then increase. E) increase then decrease