Sales mix and break-even analysis Hughes Company has fixed costs of $3,565,000. 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 Model 94 $1,600 $960 $640 Model 81  1,000 800 200 The sales mix for products Model 94 and Model 81 is 25% and 75%, respectively. Determine the break- even point in units of Model 94 and Model 81.

Managerial Accounting
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Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter6: Cost-volume-profit Analysis
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Sales mix and break-even analysis

Hughes Company has fixed costs of $3,565,000. 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
Model 94 $1,600 $960 $640
Model 81  1,000 800 200

The sales mix for products Model 94 and Model 81 is 25% and 75%, respectively. Determine the break- even point in units of Model 94 and Model 81. 

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