Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $1,135,630. 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 $380   $220     $160       ZZ 500   400     100       The sales mix for Products QQ and ZZ is 65% and 35%, 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 units b. Product ZZ fill in the blank 2 units

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter6: Cost-volume-profit Analysis
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Sales Mix and Break-Even Analysis

Olmstead Company has fixed costs of $1,135,630. 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 $380   $220     $160      
ZZ 500   400     100      

The sales mix for Products QQ and ZZ is 65% and 35%, 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 units

b. Product ZZ fill in the blank 2 units

 

 

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