Sales Mix and Break-Even Analysis Michael Company has fixed costs of $1,743,070. 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 $720 $380 $340 QQ 160 ZZ 520 360 The sales mix for Products QQ and ZZ is 55% and 45%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. X units a. Product QQ 8,056 b. Product ZZ X units 6,591
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $1,743,070. 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 $720 $380 $340 QQ 160 ZZ 520 360 The sales mix for Products QQ and ZZ is 55% and 45%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. X units a. Product QQ 8,056 b. Product ZZ X units 6,591
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sales Mix and Break-Even Analysis
Michael Company has fixed costs of $1,743,070. 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
$720
$380
$340
QQ
160
ZZ
520
360
The sales mix for Products QQ and ZZ is 55% and 45%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.
X units
a. Product QQ
8,056
b. Product ZZ
X units
6,591
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