3)

Target Profit

Outdoors Company sells a product for $180 per unit. The variable cost is $80 per unit, and fixed costs are $560,000.

Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $128,800.

a. Break-even point in sales units	units
b. Break-even point in sales units if the company desires a target profit of $128,800	units

4) sales Mix and Break-Even Analysis

Heyden Company has fixed costs of $1,549,440. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.

Product	Selling Price		Variable Cost per Unit			Contribution Margin per Unit
Q	$640		$400			$240
Z	860		500			360

The sales mix for products Q and Z is 60% and 40%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number.

a. Product Q units b. Product Z units