Question
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $565,760. The unit selling price, variable cost per unit, and contribution margin per unit
Sales Mix and Break-Even Analysis
Michael Company has fixed costs of $565,760. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:
| Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
| $180 | $100 | $80 | |||||||
| ZZ | 120 | 80 | 40 | ||||||
The sales mix for Products QQ and ZZ is 60% and 40%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.
a. Product QQ fill in the blank 1 units b. Product ZZ fill in the blank 2 units
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Finance For Non-Finance People
Authors: Sandeep Goel
2nd Edition
0367185083, 9780367185084
