Answer (C) is correct . Given the constant product mix of 3:4:1 established by the budgeted unit sales, a composite unit consists of eight individual units (3 of A, 4 of B, and 1 of C). The unit contribution margins for A, B, and C are $6 ($10 selling price – $4 unit variable cost), $7 ($15 selling price – $8 unit variable cost), and $9 ($18 selling price – $9 unit variable cost), respectively. Hence, the contribution margin for a composite unit is $55 [(3 × $6) + (4 × $7) + (1 × $9)], and the breakeven point is 2,727.2727 composite units ($150,000 FC ÷ $55). This amount equals 21,819 (rounded up) individual units (8 × 2,727.2727).
Answer (A) is incorrect because The breakeven point is 21,819 units.
Answer (B) is incorrect because The breakeven point is 21,819 units.
Answer (D) is incorrect because This number of units is based on an average contribution margin of $22 per unit.
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Assuming that total fixed costs will be $150,000 and the mix remains constant, the breakeven point (rounded to the next higher whole unit) will be