Question
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $2,852,360. 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 $2,852,360. 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 | ||||||
| $620 | $250 | $370 | |||||||
| ZZ | 890 | 580 | 310 | ||||||
The sales mix for Products QQ and ZZ is 40% and 60%, 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 _________units b. Product ZZ _______units
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Risk Based Auditing
Authors: Phil Griffiths
1st Edition
0566086522, 9780566086526
