Question
Sales mix and break-even analysis Conley Company has fixed costs of $18,316,000. The unit selling price, variable cost per unit, and contribution margin per unit
Sales mix and break-even analysis
Conley Company has fixed costs of $18,316,000. 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 | ||||||
Yankee | $160 | $100 | $60 | ||||||
Zoro | 240 | 140 | 100 |
The sales mix for products Yankee and Zoro is 60% and 40%, respectively.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Open spreadsheet
Determine the break-even point in units of Yankee and Zoro of the overall (total) product, E. If required, round your answers to the nearest whole number.
Product Yankee: fill in the blank 2 units Product Zoro: fill in the blank 3 units
Excel template File Home Insert Draw Page Layout Formulas Data Review View Help Editing Mv B Tv A v Merge $ v 60 .00 .00 >0 D F $100 A B E 1 Sales mix and break-even sales 2 3 The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. 4 5 DATA 6 Product Sales Mix Selling price Variable Cost per Unit Contribution Margin per Unit 7 60% Yankee $160 $60 240 140 100 8 Zoro 40% 9 10 Fixed costs $18,316,000 11 Using formulas and cell references, perform the required analysis, and input your answers into the green cells in the Break-Even Sales column. Transfer the numeric results for the green entry cells (B15:B16) into the appropriate fields in CNOWv2 for grading. 12 13 14 Break-Even Sales Formulas 15 Yankee 16 Zoro 17 18 19 20 21 22 23Step by Step Solution
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