Question
Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $1,012,680. The unit selling price, variable cost per unit, and contribution margin per unit
Sales Mix and Break-Even Analysis
Jordan Company has fixed costs of $1,012,680. 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 | ||||||
| $400 | $210 | $190 | |||||||
| ZZ | 540 | 370 | 170 | ||||||
The sales mix for Products QQ and ZZ is 20% and 80%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.
a. Product QQ units b. Product ZZ units
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Financial Accounting Working Papers Tools For Business Decision Making
Authors: Paul D. Kimmel ,Jerry J. Weygandt ,Donald E. Kieso
6th Edition
0470887931, 978-0470887936
