Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $1,263,850. 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 | ||||||
Model 94 | $440 | $180 | $260 | ||||||
Model 81 | 320 | 280 | 40 |
The sales mix for products Model 94 and Model 81 is 55% and 45%, respectively. Determine the break-even point in units of Model 94 and Model 81 of the overall (total) product, E. If required, round your answers to the nearest whole number.
a. Product Model 94= units ?
b. Product Model 81= units ?
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