Sales Mix and Break-Even Analysis
Jordan Company has fixed costs of $273,600. 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 | ||||||
Q | $120 | $70 | $50 | ||||||
Z | 80 | 70 | 10 |
The sales mix for products Q and Z is 50% and 50%, 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 units
b. Product Z units
Weighted average unit Contribution Margin | 30 | =(50*50%)+(10*50%) |
Overall break-even point | 9120 | =273600/30 |
a | ||
Product Q units | 4560 | =9120*50% |
b | ||
Product Z units | 4560 | =9120*50% |
Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $273,600. The unit selling price,...
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