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

Essentials of Business Analytics (MindTap Course List)
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ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
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Chapter13: Nonlinear Optimization Models
Section: Chapter Questions
Problem 4P: The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of...
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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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