Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Olmstead Company has fixed costs of $1,696,350. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products
Olmstead Company has fixed costs of $1,696,350. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:
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
Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
$620 | $310 | $310 | |||||||
ZZ | 780 | 660 | 120 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started