Kyle runs a store that sells small and large space heaters. the large heaters sell for $250 each with unit variable costs of $120, while the small space heaters sell for $80 each with unit variable costs of $30. currently, the small space heaters amount to 2,100 of the units sold, while the large heaters amount to 700 of the units sold. the fixed costs for the store are $126,000. what is the company-wide break-even point in units?

The company wide break even point in units is 1800.

We follow these steps in order to arrive at the

First we find the Contribution for each product

HeaterSelling PriceVariable Cost       Contribution

Large     250                120            

Small      80                 30            

Then, we find the weighted average contribution of the products like this:

HeatersNo. of unitsContribution             Weighted Average

Large      700                130    

Small      2100                 50             Total            2800                                                      70

Finally we calculate the company wide break even point (BEP) as follows:

BEP in units is 1800 units.

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