round a. Product QQ units b. Product ZZ units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $567,000. 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
QQ
$500
$340
$160
zZ
280
160
120
The sales mix for Products QQ and ZZ is 50% and 50%, respectively. Determine the break-even point
in units of QQ and ZZ. If required, round your answers to the nearest whole number.
a. Product QQ
units
b. Product ZZ
units
Transcribed Image Text:Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $567,000. 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 QQ $500 $340 $160 zZ 280 160 120 The sales mix for Products QQ and ZZ is 50% and 50%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units
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