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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Chapter1: Financial Statements And Business Decisions
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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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