Question
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,614,000. 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 $1,614,000. 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 | $640 | $320 | $320 | ||||||
| Z | 340 | 220 | 120 | ||||||
The sales mix for products Q and Z is 40% and 60%, 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 units
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,614,000. 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 $640 $320 $320 Z 340 220 120 The sales mix for products Q and Z is 40% and 60%, 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 units
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Financial & Managerial Accounting
Authors: Carl Warren
12th Edition
1285534646, 978-1133952428
