Discussion
With fixed costs of 500 000 and that weighted contribution of 25, the break-even volume is
Answer: A
Correct answer: 20 000 units in the stated mix
Dividing the fixed cost by the weighted contribution,
\[ \frac{500\,000}{25} = 20\,000 \ \text{units} \]that is 15,000 of the first product and 5000 of the second. The qualification matters: the answer holds only at the assumed three-to-one mix, and any shift towards the lower-margin product raises the figure.
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