Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $400,000. The unit selling price, variable cost per unit, and contribution margin per unit for the compar Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ ZZ $370 260 $220 160 $150 100 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, ro nearest whole number.
Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $400,000. The unit selling price, variable cost per unit, and contribution margin per unit for the compar Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ ZZ $370 260 $220 160 $150 100 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, ro nearest whole number.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sales Mix and Break-Even Analysis
Olmstead Company has fixed costs of $400,000. 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
ZZ
$370
260
$220
160
$150
100
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
units
b. Product ZZ
units
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