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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 to the nearest whole number.

a. Product Q  units

b. Product Z  units

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 to the nearest whole number. a. Product Q units b. Product Z units

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Answer #1

contribution per proposed sales rein = 320x0.4+ 120 x 0.6 Bouak even point =- Fixud cost contribution per unit = 1614000 200

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