Sales mix: It refers to the relative distribution of the total sales among the number of products sold by a company. In other words, it is expressed as a percentage of units sold for each product with respect to the total units sold for all the products. Break-even Point: It refers to a point in the level of operations at which a company experiences its revenues generated is equal to its costs incurred. Thus, when a company reaches at its break-even point, it reports neither an income nor a loss from operations. The formula to calculate the break-even point in sales units is as follows: Break-even point in Sales ( units ) = Fixed Costs Contribution Margin per unit To determine: the break-even point in sales units of Product QQ and Product ZZ.

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Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $392,700. 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 $400 $220 $180 ZZ 300 220 80 The sales mix for Products QQ and ZZ is 30% and 70%, respectively. Determine the break-even point in units of QQ and zZ. If required, round your answers to the nearest whole number. a. Product Q0 units b. Product ZZ units

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Chapter 21, Problem 21.5BPE

To determine

Sales mix: It refers to the relative distribution of the total sales among the number of products sold by a company. In other words, it is expressed as a percentage of units sold for each product with respect to the total units sold for all the products.

Break-even Point: It refers to a point in the level of operations at which a company experiences its revenues generated is equal to its costs incurred. Thus, when a company reaches at its break-even point, it reports neither an income nor a loss from operations. The formula to calculate the break-even point in sales units is as follows:

Break-even point in Sales(units) =Fixed CostsContribution Margin per unit

To determine: the break-even point in sales units of Product QQ and Product ZZ.

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Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $392,700. 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 $400 $220 $180 ZZ 300 220 80 The sales mix for Products QQ and ZZ is 30% and 70%, respectively. Determine the break-even point in units of QQ and zZ. If required, round your answers to the nearest whole number. a. Product Q0 units b. Product ZZ units

Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $392,700. 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 $400 $220 $180 ZZ 300 220 80 The sales mix for Products QQ and ZZ is 30% and 70%, respectively. Determine the break-even point in units of QQ and Z. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units く Previous Next

Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $1,097,400. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit $560 $340 220 $220 120 340 The sales mix for products Q and 2 is 35% and 65%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number. a. Product Q b. Product 2 units units