Gabe Industries sells two products, Basic models and Deluxe models

Accounting Feb 23, 2021

Gabe Industries sells two products, Basic models and Deluxe models. Basic models sell for $42 per unit with variable costs of $30 per unit. Deluxe models sell for $50 per unit with variable costs of $40 per unit. Total fixed costs for the company are $75,400. Gabe Industries typically sells four Basic models for every Deluxe model. What is the breakeven point in total units?

A) 6,500 units

B) 3,900 units

C) 9,921 units

D) 5,953 units

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