Question
Sales mix and break-even analysis Justin Company has fixed costs of $105,000. The unit selling price, variable cost per unit, and contribution margin per unit
Sales mix and break-even analysis
Justin Company has fixed costs of $105,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:
ProductSelling PriceVariable Cost per UnitContribution Margin per Unit
AA$50$35$15
BB$60$30$30
The sales mix for products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
8th edition
978-1-119-3904, 1119392422, 111939242X, 1119390451, 978-1119392422
