Justin Company has fixed costs of $105,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: The sales mix for products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB

Justin Company has fixed costs of $105,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: The sales mix for products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 20.18EX

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Question

Justin Company has fixed costs of $105,000. The unit selling price, variable cost per unit, and
contribution margin per unit for the company's two products follow:

The sales mix for products AA and BB is 40% and 60%, respectively. Determine the break-even
point in units of AA and BB

Product
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
AA
$50
$35
$15
BB
$60
$30
$30

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