Smuthers Company manufactures and sells three products. Selling price and variable cost data for the models are as follows:

Product

Yellow

Blue

Red

Unit selling price

$36

840

$44

Unit variable costs

26

30

36

Contribution margin

$10

Sales mix

1

2

3

Instructions

(a) Compute the break-even point in units, assuming the total fixed costs are $320,004.

(b) Prove the correctness of your answer.