Quality Containers Industries Inc. has fixed costs of $368,000. 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 AA $125   $85     $40       BB 90   40     50       The sales mix for Products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB. a.   Product AA fill in the blank 1 units b.   Product BB fill in the blank 2 units

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Quality Containers Industries Inc. has fixed costs of $368,000. 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
AA $125   $85     $40      
BB 90   40     50      

The sales mix for Products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB.

a.   Product AA fill in the blank 1 units

b.   Product BB fill in the blank 2 units

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