Question
Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $554,190. 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 $554,190. 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 | $340 | $240 | $100 | ||||||
| Z | 200 | 160 | 40 | ||||||
The sales mix for products Q and Z is 85% and 15%, 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
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
1118334329, 978-1118334324
