Sales Mix and Break-Even Analysis Quality Containers Industries Inc. has fixed costs of $368,000. 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 AA $125 $85 $40 BB 90 40 50 The sales mix for Products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB. a. Product AA units b. Product BB units

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Sales Mix and Break-Even Analysis
Quality Containers Industries Inc. has fixed costs of $368,000. 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
AA
$125
$85
$40
BB
90
40
50
The sales mix for Products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB.
a. Product AA
units
b. Product BB
units
Transcribed Image Text:Sales Mix and Break-Even Analysis Quality Containers Industries Inc. has fixed costs of $368,000. 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 AA $125 $85 $40 BB 90 40 50 The sales mix for Products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB. a. Product AA units b. Product BB units
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