Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $841,320. 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 $240 $120 $120 ZZ 340 280 60 The sales mix for Products QQ and ZZ is 80% and 20%, 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 fill in the blank 1 units b. Product ZZ fill in the blank 2 units
Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $841,320. 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 $240 $120 $120 ZZ 340 280 60 The sales mix for Products QQ and ZZ is 80% and 20%, 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 fill in the blank 1 units b. Product ZZ fill in the blank 2 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sales Mix and Break-Even Analysis
Olmstead Company has fixed costs of $841,320. 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 | ||||||
$240 | $120 | $120 | |||||||
ZZ | 340 | 280 | 60 |
The sales mix for Products QQ and ZZ is 80% and 20%, 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 fill in the blank 1 units
b. Product ZZ fill in the blank 2 units
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