CopperZ Company has variable costs which are 40% of its unit selling price and fixed costs of $30,000. How much sales wi...
CopperZ Company has variable costs which are 40% of its unit selling price and fixed costs of $30,000.
How much sales will CopperZ report at its break-even point in dollars?
Homework Answers
Contribution margin=Sales-Variable cost
=100-40
=60%
Breakeven sales=Fixed cost/Contribution margin ratio
=30,000/0.6
=$50,000
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Sales Mix and Break-Even
Analysis
Conley Company has fixed costs of $17,802,000.
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
$99
$81
Zoro
225
135
90
The sales mix for products Yankee and Zoro is 80% and 20%,
respectively. Determine the break-even point in
units of Yankee and Zoro.
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