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Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $191,080. 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 $191,080. The unit selling price, variable cost per unit, and contribution margin per unit for the companys two products follow:
Product Model | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
Yankee | $170 | $110 | $60 | ||||||
Zoro | 240 | 140 | 100 |
The sales mix for products Yankee and Zoro is 80% and 20%, respectively. Determine the break-even point in units of Yankee and Zoro.
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Operating Leverage
Decatur Co. reports the following data:
Sales | $635,900 |
Variable costs | (413,300) |
Contribution margin | $222,600 |
Fixed costs | (143,100) |
Operating income | $79,500 |
Determine Decatur Co.s operating leverage. Round your answer to one decimal place.
Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $191,080. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $170 $110 $60 Zoro 240 140 100 The sales mix for products Yankee and Zoro is 80% and 20%, respectively. Determine the break-even point in units of Yankee and Zoro. a. Product Model Yankee units b. Product Model Zoro units Operating Leverage Decatur Co. reports the following data: Sales $635,900 Variable costs (413,300) Contribution margin $222,600 Fixed costs (143,100) Operating income $79,500 Determine Decatur Co.'s operating leverage. Round your answer to one decimal placeStep by Step Solution
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