Question
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $2,393,160. 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 $2,393,160. 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 | $910 | $440 | $470 | ||||||
| Model 81 | 670 | 470 | 200 | ||||||
The sales mix for products Model 94 and Model 81 is 40% and 60%, 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
