Sales Mix and Break-Even AnalysisOlmstead Company has fixed costs of $1,345,320. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:ProductSelling PriceVariable Cost per UnitContribution Margin per UnitQQ$380 $150 $230 ZZ540 330 210 The sales mix for Products QQ and ZZ is 60% and 40%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. ### Contribution Margin AnalysisThis table provides a financial comparison between two products, QQ and ZZ, based on their selling price, variable cost per unit, and contribution margin per unit.| Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit ||---------|---------------|------------------------|------------------------------|| QQ | $380 | $150 | $230 || ZZ | $540 | $330 | $210 |**Explanation:**- **Selling Price**: This is the price at which each unit of the product is sold to customers. - **Variable Cost per Unit**: These are costs that vary directly with the level of production. For example, materials and labor that are required for each unit. - **Contribution Margin per Unit**: This is the difference between the selling price and the variable cost per unit. It represents the portion of sales revenue that is not consumed by variable costs and can contribute to covering fixed costs.**Analysis:**- **Product QQ** has a selling price of $380, variable costs of $150, and a contribution margin of $230. This indicates a higher contribution margin compared to Product ZZ, meaning Product QQ contributes more per unit to covering fixed costs and generating profit.- **Product ZZ** has a selling price of $540, variable costs of $330, and a contribution margin of $210. Although the selling price is higher than Product QQ, the variable costs are significantly higher, resulting in a slightly lower contribution margin per unit.This analysis is crucial for decision-making in pricing strategies and profitability assessments within a business. The sales mix for Products QQ and ZZ is 60% and 40%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.

Break-even analysis is a technique widely used by the production department. It helps to determine the units to be sold to recover the total cost. It also helps to set the price of the product. Break-even analysis includes contribution margin, break-even, profit volume ratio, etc.Weighted average contribution margin = {(380 - 150 ) * 60% } + {( 540 - 330 ) * 40 %} = 138 + 84 = 222 Total break even point = FIxed cost / Weighted average contribution margin = 1345,320 / 222 = 6,060 Break-even of QQ = 6,060 * 60 % = 3,636 Breaj even of ZZ = 6,606 * 40 % = 2,424