X X Sales Mix and Break-Even Analysis Megan Company has fixed costs of $299,700. 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 $210 $120 $90 150 100 50 Zoro 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 3,330 X units b. Product Model Zoro < Feedback units Check My Work Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to find break-even point in units. Units for Yankee and Zoro will be break-even point in units times the sales mix percentages for each.
X X Sales Mix and Break-Even Analysis Megan Company has fixed costs of $299,700. 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 $210 $120 $90 150 100 50 Zoro 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 3,330 X units b. Product Model Zoro < Feedback units Check My Work Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to find break-even point in units. Units for Yankee and Zoro will be break-even point in units times the sales mix percentages for each.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5BE
Related questions
Question
![X
X
Sales Mix and Break-Even Analysis
Megan Company has fixed costs of $299,700. 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
$210
$120
$90
150
100
50
Zoro
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
3,330 X units
b. Product Model Zoro
<
Feedback
units
Check My Work
Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to find break-even point in
units. Units for Yankee and Zoro will be break-even point in units times the sales mix percentages for each.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae5efe4b-9da6-4c9f-a7b4-2ed3de7e0490%2F038ecaf9-dea0-4884-8487-df2206e5aaf7%2Fwc9ks6k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:X
X
Sales Mix and Break-Even Analysis
Megan Company has fixed costs of $299,700. 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
$210
$120
$90
150
100
50
Zoro
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
3,330 X units
b. Product Model Zoro
<
Feedback
units
Check My Work
Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to find break-even point in
units. Units for Yankee and Zoro will be break-even point in units times the sales mix percentages for each.
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