Sales mix and break-even analysis Hughes Company has fixed costs of $3,565,000. 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 Model 94 $1,600 $960 $640 Model 81 1,000 800 200 The sales mix for products Model 94 and Model 81 is 25% and 75%, respectively. Determine the break- even point in units of Model 94 and Model 81.
Sales mix and break-even analysis Hughes Company has fixed costs of $3,565,000. 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 Model 94 $1,600 $960 $640 Model 81 1,000 800 200 The sales mix for products Model 94 and Model 81 is 25% and 75%, respectively. Determine the break- even point in units of Model 94 and Model 81.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sales mix and break-even analysis
Hughes Company has fixed costs of $3,565,000. 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 |
| Model 94 | $1,600 | $960 | $640 |
| Model 81 | 1,000 | 800 | 200 |
The sales mix for products Model 94 and Model 81 is 25% and 75%, respectively. Determine the break- even point in units of Model 94 and Model 81.
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