Wallace Industrial sells two products, large forklifts and small forklifts

Accounting Feb 23, 2021

Wallace Industrial sells two products, large forklifts and small forklifts. A large forklift sells for $50,000 per unit with variable costs of $26,000 per unit. Small forklifts sell for $30,000 per unit with variable costs of $12,000 per unit. Total fixed costs for the company are $1,600,000. Wallace Industrial typically sells one large forklifts for every two smalls. What is the breakeven point in total units?

A) 80 units

B) 400 units

C) 30 units

D) 27 units

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