Carter co. sells two products, arks and bins. last year carter sold 14,000 units of arks and 56,000 units of bins. related data are: product unit selling price unit variable cost unit contribution margin arks $120 $80 $40 bins 80 60 20 assuming that last year's fixed costs totaled $960,000, what was carter co.'s break-even point in units?

Carter Co.'s break-even point in units was 40000 units.

Explanation:

Total units sold = 14000 + 56000

                          = 70000

Weight of ark = 14000/70000

                      = 0.20  

weight of bins = 1 -0.20

                        = 0.80

weighted average contribution = (40 *0.20 ) + (20 *0.80 )  

                                                    = 8+ 16  

                                                    = $ 24 per unit

Break Even Point (Units) = Fixed cost /weighted average contribution

                   = 960,000 / 24  

                   = 40000 units

Therefore, Carter Co.'s break-even point in units was 40000 units.

answer; (consensus);