Sales Mix and Break-Even Analysis Megan Company has fixed costs of $313,740. 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 $100 140 Yankee Zoro a. Product Model Yankee $140 b. Product Model Zoro 220 The sales mix for products Yankee and Zoro is 65% and 35%, respectively. Determine the break-even point in units of Yankee and Zoro. units Contribution Margin per Unit units $40 80
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $313,740. 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 $100 140 Yankee Zoro a. Product Model Yankee $140 b. Product Model Zoro 220 The sales mix for products Yankee and Zoro is 65% and 35%, respectively. Determine the break-even point in units of Yankee and Zoro. units Contribution Margin per Unit units $40 80
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:Sales Mix and Break-Even Analysis
Megan Company has fixed costs of $313,740. 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
$100
140
Yankee
Zoro
a. Product Model Yankee
$140
220
b. Product Model Zoro
The sales mix for products Yankee and Zoro is 65% and 35%, respectively. Determine the break-even point in units of
Yankee and Zoro.
units
Contribution Margin per Unit
units
$40
80
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