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5. Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $1,158,550. The unit selling price, variable cost per unit, and contribution margin per
5.
Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $1,158,550. 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 | ||||||
Model 94 | $580 | $320 | $260 | ||||||
Model 81 | 420 | 260 | 160 |
The sales mix for products Model 94 and Model 81 is 75% and 25%, respectively. Determine the break-even point in units of Model 94 and Model 81. If required, round your answers to the nearest whole number.
a. Product Model 94 units b. Product Model 81 units
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