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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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