Question
Megan Company has fixed costs of $268,560. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products
Megan Company has fixed costs of $268,560. 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 | ||||||
| $280 | $190 | $90 | |||||||
| ZZ | 170 | 140 | 30 | ||||||
The sales mix for Products QQ and ZZ is 70% and 30%, 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
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Contemporary Auditing
Authors: Michael C. Knapp
8th edition
978-0538466790, 538466790, 978-1285066608
