Question

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 $2,100,000. Wallace industrial typically sells one large forklifts for every two smalls. How many large forklifts must be sold at breakeven?

Answer 1

Answer:

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 $2,100,000. Wallace industrial typically sells one large forklifts for every two smalls. 3 small and 4 large forklifts should be sold to break even.