Question
Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $1,548,250. The unit selling price, variable cost per unit, and contribution margin per unit
Sales Mix and Break-Even Analysis
Olmstead Company has fixed costs of $1,548,250. 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 | ||||||
| $630 | $430 | $200 | |||||||
| ZZ | 830 | 480 | 350 | ||||||
The sales mix for Products QQ and ZZ is 50% and 50%, 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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Cost Management A Strategic Emphasis
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
7th edition
77733770, 978-0077733773
