Sales Mix and Break-Even AnalysisHeyden Company has fixed costs of $392,700. The unit selling price, variable cost per unit, and contribution margin per unit for the company's twoproducts follow:Product Selling Price Variable Cost per Unit Contribution Margin per UnitQQ$400$220$180ZZ30022080The sales mix for Products QQ and ZZ is 30% and 70%, respectively. Determine the break-even point in units of QQ and zZ. If required, round youranswers to the nearest whole number.a. Product Q0unitsb. Product ZZunits

Breakeven sales revenue is that point of revenue at which business is covering its fixed costs and…

Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $392,700. The products follow: Product Selling Price Variable Cost per Uni QQ $400 $220 ZZ 300 220 The sales mix for Products QQ and ZZ is 30% and answers to the nearest whole number. a. Product QQ units b. Product ZZ units

Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $392,700. The products follow: Product Selling Price Variable Cost per Uni QQ $400 $220 ZZ 300 220 The sales mix for Products QQ and ZZ is 30% and answers to the nearest whole number. a. Product QQ units b. Product ZZ units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $392,700. 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
$400
$220
$180
ZZ
300
220
80
The sales mix for Products QQ and ZZ is 30% and 70%, respectively. Determine the break-even point in units of QQ and zZ. If required, round your
answers to the nearest whole number.
a. Product Q0
units
b. Product ZZ
units

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