Megan Company has fixed costs of $1,673,280. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $900 $580 $320 Zoro 720 440 280 The sales mix for products Yankee and Zoro is 20% and 80%, respectively. Determine the break-even point in units of Yankee and Zoro.a.  Product Model Yankee fill in the blank 1 of 2 unitsb.  Product Model Zoro fill in the blank 2 of 2 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Megan Company has fixed costs of $1,673,280. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow:

Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit
Yankee $900 $580 $320
Zoro 720 440 280

The sales mix for products Yankee and Zoro is 20% and 80%, respectively. Determine the break-even point in units of Yankee and Zoro.

a.  Product Model Yankee fill in the blank 1 of 2 units
b.  Product Model Zoro fill in the blank 2 of 2 units

 

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