Question
Olmstead Company has fixed costs of $877,800. 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 $877,800. 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 | ||||||
| $500 | $320 | $180 | |||||||
| ZZ | 640 | 520 | 120 |
The sales mix for Products QQ and ZZ is 75% and 25%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.
a. Product QQfill in the blank 1 units b. Product ZZfill in the blank 2 units
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Educational Foundations
Authors: Leslie Kaplan, James D Stice, William Owings
2nd Edition
1285968298, 9781285968292
