Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Product Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $774,150. The unit selling price, varlable cost per unit, and contribution margin per

image text in transcribed
Product Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $774,150. The unit selling price, varlable cost per unit, and contribution margin per unit for the company's two products are provided below. Selling Price Variable Cost per Unit Contribution Margin per Unit Model 94 $520 $320 $200 Model 81 400 220 The sales mix for products Model 94 and Model 81 is 75% and 25%, respectively. Determine the break-even point in units of Model 94 and Model 81 of the overall (total) product, E. If required, round your answers to the nearest whole number. a. Product Model 94 X units 180 b. Product Model 81 X units Feedback Check My Work Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to find break-even point in units Units for Model 94 and Model 81 will be break even point in units times the sales mix percentages for each Learning Objectives

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions