FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Sales Mix and Break-Even Analysis
Michael Company has fixed costs of $1,141,680. 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 | $430 | $260 | $170 | ||||||
Zoro | 290 | 160 | 130 |
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. Product Model Zoro fill in the blank 2 units
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