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Michael Company has fixed costs of $2,889,120. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products
Michael Company has fixed costs of $2,889,120. 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 | ||||||
$720 | $300 | $420 | |||||||
ZZ | 1,000 | 850 | 150 |
The sales mix for Products QQ and ZZ is 60% and 40%, 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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