Answer (C) is correct . The unit contribution margins for plastic frames and glass frames are $5 ($10 – $2 – $3) and $7 ($15 – $3 – $5), respectively. If the number of plastic frames sold is 50% of the number of glass frames sold, a composite unit will contain one plastic frame and two glass frames. Thus, the composite unit contribution margin will be $19 ($5 + $7 + $7), and the breakeven point in units will be 153,947 [3 units × ($975,000 ÷ $19)].
Answer (A) is incorrect because The breakeven point in units will be 153,947.
Answer (B) is incorrect because The breakeven point in units will be 153,947.
Answer (D) is incorrect because The breakeven point in units will be 153,947.
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