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eBook Show Me How Question Content Area Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $1,197,000. The unit selling price, variable cost
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Sales Mix and Break-Even Analysis
Olmstead Company has fixed costs of $1,197,000. 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 | ||||||
$580 | $260 | $320 | |||||||
ZZ | 840 | 590 | 250 |
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 fill in the blank 1 units b. Product ZZ fill in the blank 2 units
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