Question
Sales mix and break-even analysis Michael Company has fixed costs of $1,463,820. 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 $1,463,820. 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 | $300 | $140 | $160 |
Zoro | 460 | 260 | 200 |
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
The sales mix for products Yankee and Zoro is 35% and 65%, respectively. Determine the break-even point in units of Yankee and Zoro. a. Product Model Yankee ______ units b. Product Model Zoro ____units
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