Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $545,400. 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 $220 $100 360 280 The sales mix for products Yankee and Zoro is 25% and 75%, respectively. Determine the break-even point in units of Yankee and Zoro. a. Product Model Yankee Yankee Zoro b. Product Model Zoro units units $120 80
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $545,400. 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 $220 $100 360 280 The sales mix for products Yankee and Zoro is 25% and 75%, respectively. Determine the break-even point in units of Yankee and Zoro. a. Product Model Yankee Yankee Zoro b. Product Model Zoro units units $120 80
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Yankee
Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $545,400. 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
Zoro
$220
b. Product Model Zoro
360
units
$100
units
280
The sales mix for products Yankee and Zoro is 25% and 75%, respectively. Determine the break-even point in units of Yankee and Zoro.
a. Product Model Yankee
$120
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