Question

Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $98,260. The unit selling price,...

Sales Mix and Break-Even Analysis

Jordan Company has fixed costs of $98,260. 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 $100 $60 $40
Model 81 160 140 20

The sales mix for products Model 94 and Model 81 is 70% and 30%, 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

Homework Answers

Answer #1

Solution:

Weighted average contribution margin per unit = (Contribution margin per unit of Model 94 * Sales mix) + (Contribution margin per unit of Model 81 * Sales mix)

= ($40*70%) + ($20 * 30%) = $34 per unit

Fixed cost = $98,260

Breaekven units = fixed cost / contribution margin per unit = $98,260 / $34 = 2890 units

Breakeven point in units of model 94 = Total breakeven units * Sales mix for model 94

= 2890 * 70% = 2023 units

Breakeven point in units of model 81 = Total breakeven units * Sales mix for model 81

= 2890 * 30% = 867 units

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $1,263,850. The unit selling price,...
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...
Sales mix and break-even analysis Conley Company has fixed costs of $15,525,000. The unit selling price,...
Sales mix and break-even analysis Conley Company has fixed costs of $15,525,000. 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 Yankee $175 $100 $75 Zoro 255 180 75 The sales mix for products Yankee and Zoro is 20% and 80%, respectively. Determine the break-even point in units of Yankee and Zoro of the overall (total) product, E. If...
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $1,021,330. The unit selling price,...
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $1,021,330. 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 $440 $240 $200 Z 560 500 60 The sales mix for products Q and Z is 35% and 65%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers...
eyden Company has fixed costs of $350,900. The unit selling price, variable cost per unit, and...
eyden Company has fixed costs of $350,900. 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 $100 $60 $40 Zoro 140 80 60 The sales mix for products Yankee and Zoro is 10% and 90%, respectively. Determine the break-even point in units of Yankee and Zoro. a. Product Model Yankee fill in the blank 1 units b....
Heyden Company has fixed costs of $705,600. The unit selling price, variable cost per unit, and...
Heyden Company has fixed costs of $705,600. 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 QQ $700 $460 $240 ZZ 380 260 120 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...
Steven Company has fixed costs of $186,032. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $186,032. 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 per Unit Variable Cost per Unit Contribution Margin per Unit X $1,344 $504 $840 Y 538 288 250 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Steven Company has fixed costs of $430,652. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $430,652. 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 per Unit Variable Cost per Unit Contribution Margin per Unit X $1,280 $480 $800 Y 667 357 310 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Steven Company has fixed costs of $195,168. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $195,168. 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 per Unit Variable Cost per Unit Contribution Margin per Unit X $1,408 $528 $880 Y 430 230 200 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Steven Company has fixed costs of $289,518. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $289,518. 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 per Unit Variable Cost per Unit Contribution Margin per Unit X $848 $318 $530 Y 645 345 300 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and...
Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $502,200, and the sales mix is 30% bats and 70% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $80 $60 Gloves 200 120 a. Compute the break-even sales (units) for the overall enterprise product, E. ???? units b. How many units of...