Question
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $1,045,000. The unit selling price, variable cost per unit, and contribution margin per unit
Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $1,045,000. 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 | $240 | $120 | $120 | ||||||
| Z | 360 | 280 | 80 | ||||||
The sales mix for products Q and Z is 75% and 25%, 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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Commercial Printing IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304133753, 978-1304133755
