Sales Mix and Break-Even Analysis

Heyden Company has fixed costs of $430,350. 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	$520		$260			$260
Z	380		340			40

The sales mix for products Q and Z is 25% and 75%, 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

Margin of Safety

The Rachel Company has sales of $360,000, and the break-even point in sales dollars is $255,600.

Determine the company's margin of safety as a percent of current sales. Enter your answer rounded to one decimal place. %