Question

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 ?

Answer #1

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Variable Cost per Unit
Contribution Margin per Unit
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b. Compute the anticipated break-even sales (units), assuming
that the unit selling price is increased and all costs remain
constant. units

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