Home / Questions / Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $207,200. The unit se...
Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $207,200. 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 | ||||||
$190 | $80 | $110 | |||||||
ZZ | 140 | 80 | 60 |
The sales mix for Products QQ and ZZ is 20% and 80%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.
a. Product QQ units
b. Product ZZ units
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