Question
Sales Mix and Break-Even Analysis Einhorn Company has fixed costs of $105,000. The unit selling price, variable cost per unit, and contribution margin per unit
Sales Mix and Break-Even Analysis
Einhorn Company has fixed costs of $105,000. The unit selling price, variable cost per unit, and contribution margin per unit for the companys two products follow:
| Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
| $50 | $35 | $15 | |||||||
| ZZ | 60 | 30 | 30 | ||||||
The sales mix for products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ.
a. Product QQ units b. Product ZZ units
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College Accounting A Practical Approach
Authors: Jeffrey Slater
12th edition
978-0132772068, 133468100, 013277206X, 9780133468106, 978-0133133233
