har Sales mix and break-even analysisMegan Company has fixed costs of $736,600. The unit selling price, variable cost per unit, and contribution margin per unit for the company's twoproducts follow:Product ModelSelling Price Variable Cost per UnitContribution Margin per UnitYankee$320$180$140Zoro22014080The sales mix for products Yankee and Zoro is 60% and 40%, respectively. Determine the break-even point in units of Yankee and Zoro.a. Product Model Yankeeb. Product Model Zoro☐ unitsunits

Step 1: Determine the Weighted Average Contribution Margin per unit by multiplying each product…

Answered: Sales mix and break-even analysis Megan…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

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Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
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Megan Company has fixed costs of $1,673,280. 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 $900 $580 $320 Zoro 720 440 280 The sales mix for products Yankee and Zoro is 20% and 80%, respectively. Determine the break-even point in units of Yankee and Zoro.a. Product Model Yankee fill in the blank 1 of 2 unitsb. Product Model Zoro fill in the blank 2 of 2 units
Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $1,097,400. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit $560 $340 220 $220 120 340 The sales mix for products Q and 2 is 35% and 65%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number. a. Product Q b. Product 2 units units
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Megan Company has fixed costs of $2,254,000. 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 QQ $620 $340 $280 ZZ 800 520 280 The sales mix for Products QQ and ZZ is 60% and 40%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.
Heyden Company has fixed costs of $733,950. 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 $330 $180 $150 ZZ 460 400 60 The sales mix for Products QQ and ZZ is 50% and 50%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ fill in the blank 1 unitsb. Product ZZ fill in the blank 2 units
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