Most businesses sell several products at varying prices. The products often have different unit variable costs. Thus, the total profit and

the breakeven point depend on the proportions in which the products are sold. Sales mix is the relative contribution of sales among

various products sold by a firm. Assume that the sales of Jordan Incorporated for a typical year are as follows:

Assume the following unit selling prices and unit variable costs:

Fixed costs are $$432,000$ per year. Assume that the sales mix, expressed in terms of relative physical units sold, is constant as sales

volume changes.

Required:

Determine the breakeven point in total units and, for this breakeven point, calculate the number of units of A and $B$ that must be

sold. Use the weighted$-$average contribution margin approach.

Determine the overall breakeven point in terms of sales dollars based on the weighted$-$average contribution margin ratio $($CMR$).$

$($Hint: The weights for calculating the weighted$-$average CMR are based on relative sales dollars, not units, of the two products.$)$ Break

down the total sales dollars breakeven point into sales dollars for product A and sales dollars for product B$.$

Complete this question by entering your answers in the tabs below.

Determine the overall breakeven point in terms of sales dollars based on the weighted$-$average contribution margin ratio

$($CMR$).($Hint: The weights for calculating the weighted$-$average CMR are based on relative sales dollars, not units, of the two

products.$)$ Break down the total sales dollars breakeven point into sales dollars for product A and sales dollars for product B$.$

$($Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.$)$

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