Sales Mix and Break-Even Analysis Megan Company has fixed costs of $299,700. 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 Yankee Zoro $120 100 $90 50 $210 150 The sales mix for products Yankee and Zoro is 10% and 90%, respectively. Determine the break-even point in-units of Yankee and Zoro. a. Product Model Yankee 3,330 X units b. Product Model Zoro Feedback units ▼ Check My Work Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to find break-even point in units. Units for Yankee and Zoro will be break-even point in units times the sales mix percentages for each.
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $299,700. 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 Yankee Zoro $120 100 $90 50 $210 150 The sales mix for products Yankee and Zoro is 10% and 90%, respectively. Determine the break-even point in-units of Yankee and Zoro. a. Product Model Yankee 3,330 X units b. Product Model Zoro Feedback units ▼ Check My Work Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to find break-even point in units. Units for Yankee and Zoro will be break-even point in units times the sales mix percentages for each.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sales Mix and Break-Even Analysis
Megan
Transcribed Image Text:Sales Mix and Break-Even Analysis
Megan Company has fixed costs of $299,700. 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
Yankee
Zoro
$120
100
$90
50
$210
150
The sales mix for products Yankee and Zoro is 10% and 90%, respectively. Determine the break-even point in-units of Yankee and Zoro.
a. Product Model Yankee
3,330 X units
b. Product Model Zoro
Feedback
units
▼ Check My Work
Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to find break-even point in
units. Units for Yankee and Zoro will be break-even point in units times the sales mix percentages for each.
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