Question
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $350,400. The unit selling price, variable cost per unit, and contribution margin per unit
Sales Mix and Break-Even Analysis
Megan Company has fixed costs of $350,400. 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 | ||||||
| Model 94 | $370 | $250 | $120 | ||||||
| Model 81 | 280 | 210 | 70 | ||||||
The sales mix for products Model 94 and Model 81 is 20% and 80%, respectively. Determine the break-even point in units of Model 94 and Model 81 of the overall (total) product, E. If required, round your answers to the nearest whole number.
a. Product Model 94___ units b. Product Model 81____ units
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
