1.

Sales Mix and Break-Even Analysis

Jordan Company has fixed costs of $1,425,600. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:

Product	Selling Price		Variable Cost per Unit			Contribution Margin per Unit
QQ	$680		$440			$240
ZZ	420		340			80

The sales mix for Products QQ and ZZ is 50% and 50%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.

a. Product QQ ___units b. Product ZZ ___units

2.

Operating Leverage

Decatur Co. reports the following data:

Sales		$557,300
Variable costs		356,700
Contribution margin		$200,600
Fixed costs		156,000
Income from operations		$44,600

Determine Decatur Company's operating leverage. Round your answer to one decimal place.

3.

Margin of Safety

The Whitehead Company has sales of $430,000, and the break-even point in sales dollars is $283,800.

Determine the company's margin of safety as a percent of current sales. ___%