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Sales Mix and Break-Even Analysis Megan Company has fixed costs of $606,300. 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 $606,300. 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 | $330 | $140 | $190 | ||||||
Zoro | 230 | 160 | 70 |
The sales mix for products Yankee and Zoro is 20% and 80%, respectively. Determine the break-even point in units of Yankee and Zoro.
a. Product Model Yankee fill in the blank 1 units b. Product Model Zoro fill in the blank 2 units
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