Business

AccountingQ&A LibrarySales Mix and Break-Even AnalysisHeyden Company has fixed costs of $399,970. The unit selling price, variable cost per unit, and contribution margin per unit for thecompany's two products followProduct Selling Price Variable Cost per UnitContribution Margin per Unit$100QQ$180$80240220zz20The sales mix for Products QQ and ZZ is 45% and 55%, respectively. Determine the break-even point in units of QQ and ZZ. Ifrequired, round your answers to the nearest whole number.a. Product QQunitsb. Product ZZunitsQuestion

Asked Oct 31, 2019

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Step 1

Break even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No Profit No Loss. This sale amount exactly covers the underlying fixed costs of a business, plus all the variable costs associated with the sales.

Step 2

Computation of Weighted Average Contribution

Step 3

Computation of Break-eve...

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