Question
100%
Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $399,970. 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
$100
QQ
$180
$80
240
220
zz
20
The sales mix for Products QQ and ZZ is 45% and 55%, respectively. Determine the break-even point in units of QQ and ZZ. If
required, round your answers to the nearest whole number.
a. Product QQ
units
b. Product ZZ
units
expand button
Transcribed Image Text:Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $399,970. 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 $100 QQ $180 $80 240 220 zz 20 The sales mix for Products QQ and ZZ is 45% and 55%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units
Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Not helpful? See similar books
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Financial Statements And Business Decisions. 1Q
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $459,200. The unit selling…

A: For calculating the break even sale with different products , we need use the following formula :-…

Q: Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $1,071,360. The unit selling…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: Hello, I attempted this problem but my values are not correct. Can you help me solve this? Thanks!

A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…

Q: Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $1,135,630. The unit selling…

A: Breakeven point is that point of sales revenue at which business is only recovering its fixed costs…

Q: Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $841,320. The unit selling…

A: Click to see the answer

Q: Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $1,345,320. The unit selling…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $803,520. The unit selling…

A: Heyden Company has fixed costs of $803,520 Product Sales Price per unit Variable Cost per unit…

Q: Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,633,000. The unit selling…

A: Break-even point is the point wherein revenues equals expenses or contribution equals fixed costs.…

Q: Sales mix and break-even analysis Hughes Company has fixed costs of $3,565,000. The unit selling…

A: Formula: Break even point in units = Fixed cost / Weighted average contribution margin.

Q: Sales Mix and Break-Even Analysis Michael Company has fixed costs of $1,830,220. The unit selling…

A: Break-even point in units: 7,690 units

Q: Sales Mix and Break-Even Analysis Michael Company has fixed costs of $814,900. The unit selling…

A: Weighted average contribution margin per unit = (Contribution margin for QQ*sales mix %) +…

Q: Sales Mix and Break-Even Analysis Quality Containers Industries Inc. has fixed costs of $368,000.…

A: Breakeven point is the point At which the organisation neither earns the profit nor has to bear the…

Q: Sales Mix and Break-Even Analysis Quality Containers Industries Inc. has fixed costs of $368,000.…

A: Break-even analysis:- Break even analysis is referred as the point at which the firm’s total cost is…

Q: Sales Mix and Break-Even Analysis Quality Containers Industries Inc. has fixed costs of $368,000.…

A: The Numerical has covered the Concept of Break even For Multiple Product Or Overall BEP Or Combined…

Q: Sales Mix and Break-Even Analysis Megan Company has fixed costs of $231,150. The unit selling…

A: The breakeven point is that point of sales revenue at which a business is recovering its fixed costs…

Q: Sales Mix and Break-Even Analysis Michael Company has fixed costs of $514,080. The unit selling…

A: Break-Even Sales (Unit):Break-even point is the production level where total revenue covers the…

Q: Sales Mix and Break-Even Analysis Michael Company has fixed costs of $1,410,640. The unit selling…

A: At Break even Point level of sales, sales revenues cover fixed and variable costs. At this point…

Q: Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,255,540. The unit selling…

A: Breakeven point is that point of sales revenue at which business is recovering only its fixed costs…

Q: Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,255,540. The unit selling…

A: Break Even Point can be defined as a point where contribution equals cost or recovers all expenses…

Q: Sales mix and break-even analysis Conley Company has fixed costs of $26,937,000. The unit selling…

A: Calculate the weighted-average contribution margin per unit:

Q: Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $392,700. The products follow:…

A: Breakeven sales revenue is that point of revenue at which business is covering its fixed costs and…

Q: Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $392,700. The unit selling prie…

A: Breakeven point is that point at which business is recovering only fixed costs and variable costs…

Q: Trailblazer Company sells a product for $110 per unit. The variable cost is $45 per unit, and fixed…

A: Break even point in sales unit  =  Fixed Costs / ( Sale per unit - Variable cost per unit )   Break…

Q: Contribution margin, breakeven point, margin of safety. Dianne Company makes a product that sells…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-part for you. If you…

Q: Target Profit Forest Company sells a product for $215 per unit. The variable cost is $90 per unit,…

A: Click to see the answer

Q: Target Profit Trailblazer Company sells a product for $155 per unit. The variable cost is $80 per…

A: Break even point is that point at which business is recovering its fixed costs and variable costs…

Q: uality Containers Industries Inc. has fixed costs of $368,000. The unit selling price, variable cost…

A: Break even points in units =Fixed costContribution margin per unit Computation of weighted average…

Q: Conley Company has fixed costs of $17,802,000. The unit selling price, variable cost per unit, and…

A: Formula: Break even point in units = Fixed cost / Unit contribution margin

Q: Michael Company has fixed costs of $365,200. The unit selling price, variable cost per unit, and…

A: Weighted average contribution margin per unit = (Contribution margin for QQ*sales mix %) +…

Q: Target Profit Forest Company sells a product for $230 per unit. The variable cost is $100 per unit,…

A: Calculate the contribution margin per unit.

Q: Walton Company incurs annual fixed costs of $52,925. Variable costs for Walton's product are $26.00…

A: Calculate the sales in units to earn the desired profit as follows: Units = (Fixed cost + Profit)…

Q: Stuart Corporation sells products for $31 each that have variable costs of $14 per unit. Stuart's…

A: Contribution per unit=Sale per unit-Variable cost per unit=$31-$14=$17

Q: Break-Even in Units and Sales Dollars, Margin of Safety Drake Company produces a single product.…

A: Compute breakeven point in units and sales revenue, as follows: Result:

Q: Break-Even Point Hilton Enterprises sells a product for $108 per unit. The variable cost is $49 per…

A: Formula: Break even point = Fixed cost / (Selling price - Variable cost)

Q: Contribution margin, breakeven point, margin of safety. Dianne Company makes a product that sells…

A: Contribution margin is important concept used in cost accounting. It means sales revenue which is…

Q: Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for…

A: 1 Break-even point in units = Total fixed cost / Contribution margin per unit    =  $685,490 /…

Q: .Analysis of Cost Structure Spring Company's cost structure is dominated by variable costs with a…

A: A cost structure refers to different sets and relative amounts of variable and fixed expenditures…

Q: Target Profit Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per…

A: a. Determine break-even point in sales units.

Q: Break-Even Point Nicolas Enterprises sells a product for $83 per unit. The variable cost is $45 per…

A: Click to see the answer

Q: Radison Enterprises sells a product for $92 per unit. The Costs that vary in total dollar amount as…

A: a) Given selling price = $92 per unit Variable cost per unit = $59 per unit Therefore contribution…

Q: Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of…

A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: The Atlantic Company sells a product with a break-even point of 6,142 sales units. The variable cost…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

Q: Atlantic Company sells a product with a break-even point of 6,160 sales units. The variable cost is…

A: Break-even point = Fixed cost/Contribution margin

Q: Target Profit Outdoors Company sells a product for $195 per unit. The variable cost is $80 per…

A: (a) Break Even Point in sales unit = Total Fixed Cost / Contribution per unit Contribution Per unit…

Q: Break-Even Point Sheridan Inc. sells a product for $92 per unit. The variable cost is $48 per unit,…

A: Break-even Point: It is the point where the company is at zero profit. It is where the company is…

Q: Contribution Margin Molly Company sells 40,000 units at $16 per unit. Variable costs are $9.92 per…

A: a.

Q: Thornton Manufacturing Company reported the following data regarding a product it manufactures and…

A: Click to see the answer

Q: Klinken Corporation's contribution margin ratio on the sale of its most popular product is 50%. The…

A: Break-even sales: There are several components which are included in the calculation of break-even…

Q: Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $83 per…

A: Sales revenue: It is the revenue earned by a business on selling the goods and services to the…

Q: Silver River Company sells Products S and T and has made the following estimates for the coming…

A: Step 1: Compute the weighted average contribution margin per unit: Weighted average contribution…

Knowledge Booster
Recommended textbooks for you
  • FINANCIAL ACCOUNTING
    Accounting
    ISBN:9781259964947
    Author:Libby
    Publisher:MCG
    Accounting
    Accounting
    ISBN:9781337272094
    Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
    Publisher:Cengage Learning,
    Accounting Information Systems
    Accounting
    ISBN:9781337619202
    Author:Hall, James A.
    Publisher:Cengage Learning,
  • Horngren's Cost Accounting: A Managerial Emphasis...
    Accounting
    ISBN:9780134475585
    Author:Srikant M. Datar, Madhav V. Rajan
    Publisher:PEARSON
    Intermediate Accounting
    Accounting
    ISBN:9781259722660
    Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
    Publisher:McGraw-Hill Education
    Financial and Managerial Accounting
    Accounting
    ISBN:9781259726705
    Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
    Publisher:McGraw-Hill Education
  • FINANCIAL ACCOUNTING
    Accounting
    ISBN:9781259964947
    Author:Libby
    Publisher:MCG
    Accounting
    Accounting
    ISBN:9781337272094
    Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
    Publisher:Cengage Learning,
    Accounting Information Systems
    Accounting
    ISBN:9781337619202
    Author:Hall, James A.
    Publisher:Cengage Learning,
    Horngren's Cost Accounting: A Managerial Emphasis...
    Accounting
    ISBN:9780134475585
    Author:Srikant M. Datar, Madhav V. Rajan
    Publisher:PEARSON
    Intermediate Accounting
    Accounting
    ISBN:9781259722660
    Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
    Publisher:McGraw-Hill Education
    Financial and Managerial Accounting
    Accounting
    ISBN:9781259726705
    Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
    Publisher:McGraw-Hill Education