Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $399,970. 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 $100 QQ $180 $80 240 220 zz 20 The sales mix for Products QQ and ZZ is 45% and 55%, 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
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $399,970. 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 $100 QQ $180 $80 240 220 zz 20 The sales mix for Products QQ and ZZ is 45% and 55%, 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $399,970. 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
$100
QQ
$180
$80
240
220
zz
20
The sales mix for Products QQ and ZZ is 45% and 55%, 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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