McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the break-even point in composite units.
A. 1,550.
B. 1,395.
C. 3,805.
D. 1,350.
E. 2,092.
Answer: D
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