Question

product 1 product 2 Total Expected Unit Sales 140 60 200 Price per unit Variable cost per unit Contribution margin $240 180 $
0 0
Add a comment Improve this question Transcribed image text
Answer #1

BREAK EVEN point is the sales at which there is no profit no loss.

At break even total sales= fixed cost+variable cost

sales ratio for product 1 & 2 are

140:60

=7:3

Product Contribution margin ratio Contribution margi
1 $60 0.70X $42X
2 $40 0.30X $12X

At break even:

Total fixed cost = Contribution margin

$2700=$42X+$12X

X=50 units

product 1:

0.70X

0.70*50units

=35 units

Thus, at break even product 1 sold would be 35 units.

Please upvote if you find his helpful.Incase of query pelase comment.

Add a comment
Know the answer?
Add Answer to:
product 1 product 2 Total Expected Unit Sales 140 60 200 Price per unit Variable cost...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Blanchard Company manufactures a single product that sells for $140 per unit and whose total variable...

    Blanchard Company manufactures a single product that sells for $140 per unit and whose total variable costs are $105 per unit. The company's annual fixed costs are $563,500. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio (c) Compute the company's break-even point in units. Choose Numerator: Choose Denominator: = Break-Even Units Break-even units (d) Compute the company's break-even point in dollars...

  • Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,614,000. The unit selling price, variable cost per...

    Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,614,000. 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 $640 $320 $320 Z 340 220 120 The sales mix for products Q and Z is 40% and 60%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers...

  • Target Profit Ramirez Inc. sells a product for $80 per unit. The variable cost is $60...

    Target Profit Ramirez Inc. sells a product for $80 per unit. The variable cost is $60 per unit, and fixed costs are $2,000,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $250,000. a. Break-even point in sales units 100,000 units b. Break-even point in sales units if the company desires a target profit of $250,000 22,500 units Feedback a. Unit sales price minus unit...

  • Allison Enterprises sells a product for $100 per unit. The variable cost is $60 per unit,...

    Allison Enterprises sells a product for $100 per unit. The variable cost is $60 per unit, while fixed costs are $180,000. Additionally, the income tax rate is 40 percent Required: a. Calculate the contribution margin per unit. b. Calculate the break-even point in sales units. c. Calculate the break-even point in sales dollars or revenues. d. How many units need to be sold to generate a pretax income of $60,000? e. Recalculate the break-even point in sales units if the...

  • and poles. The sales price and variable cost for each follows: Product per Unit Snowboards $190...

    and poles. The sales price and variable cost for each follows: Product per Unit Snowboards $190 per Unit $330 $390 $60 Skis $240 Poles $30 costs shared by the three products are $249,200, how many units of each product will need to be sold in order for Salvadores to break even? Break-even per composite unit Number of Units per product Product Ratio (mix) Snowboards Skis Poles

  • Sales Mix and Break-Even Analysis Megan Company has fixed costs of $402,380. The unit selling price,...

    Sales Mix and Break-Even Analysis Megan Company has fixed costs of $402,380. 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 $140 $60 $80 ZZ 180 140 40 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...

  • Sales Mix and Break-Even Analysis Michael Company has fixed costs of $496,640. The unit selling price,...

    Sales Mix and Break-Even Analysis Michael Company has fixed costs of $496,640. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $180 $80 $100 Zoro 140 120 20 The sales mix for products Yankee and Zoro is 55% and 45%, respectively. Determine the break-even point in units of Yankee and Zoro. a. Product Model Yankee  units b. Product...

  • Michael Company has fixed costs of $814,880. The unit selling price, variable cost per unit, and...

    Michael Company has fixed costs of $814,880. 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 $740 $480 $260 ZZ 560 440 120 The sales mix for Products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product...

  • Target Profit Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per unit, and flxed c...

    Target Profit Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per unit, and flxed costs are $396,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $138,600. 396,000 Xunits a. Break-even point in sales units b. Break-even point in sales units if the company desires a target profit of 120 X units $138,600 Feedback YCheck My Work a. Unit...

  • Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable...

    Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit. The company's annual fixed costs are $596,000. (1) Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break- even point. (2) Assume the company's fixed costs increase by $134,000. What amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT