Sales Mix and Break-Even Analysis

Heyden Company has fixed costs of $357,060. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.

Product	Selling Price		Variable Cost per Unit			Contribution Margin per Unit
Q	$190		$120			$70
Z	270		220			50

The sales mix for products Q and Z is 80% and 20%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number.

a. Product Q units b. Product Z units

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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 Q and Z will be break-even point in units times the sales mix percentages for each.