Sales Mix and Break-Even Analysis

Michael Company has fixed costs of $1,980,720. 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	$480		$200			$280
Z	680		440			240

The sales mix for products Q and Z is 55% and 45%, 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

Operating Leverage

Cartersville Company reports the following data:

Sales $592,700 Variable costs 385,300 Fixed costs 156,800

Determine Cartersville Company's operating leverage. Round your answer to one decimal place.

Margin of Safety

The Ira Company has sales of $800,000, and the break-even point in sales dollars is $568,000.

Determine the company's margin of safety as a percent of current sales. Enter your answer rounded to one decimal place. %