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Target Profit Woodsman Company sells a product for $225 per unit. The variable cost is $125 per unit, and fixed costs are $710,000. Determine (a)
Target Profit Woodsman Company sells a product for $225 per unit. The variable cost is $125 per unit, and fixed costs are $710,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $177,500. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $177,500 units Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $1,392,880. 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 Q $720 $380 $340 Z 400 300 100 The sales mix for products Q and Z is 35% and 65%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number. a. Product units b. Product Z units
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