Sales mix and break-even analysis Megan Company has fixed costs of $871,320. 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 $370 520 $240 $130 420 100 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 b. Product Model Zoro units units
Sales mix and break-even analysis Megan Company has fixed costs of $871,320. 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 $370 520 $240 $130 420 100 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 b. Product Model Zoro units units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sales mix and break-even analysis
Megan Company has fixed costs of $871,320. 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
$370
520
$240
$130
420
100
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
b. Product Model Zoro
units
units
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