Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $446,040. Th

Question

Sales Mix and Break-Even Analysis

Jordan Company has fixed costs of $446,040. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.

The sales mix for products Q and Z is 70% and 30%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number.

a. Product Q  units

b. Product Z  units

Explanation / Answer

Break even point (in uts)= fixed cost /contribution per unit Q Z 446,040*70% 446,040*30% Fixed cost 312228 133812 Contribution per unit 120 80 fixed cost /contribution per unit 2602 1673 Breakeven point at which both the units will breakeven Selling price 280+200 480 Variable cost 80+200 280 CONTRIBUTION 480-280 200 fixed cost /contribution per unit 446,040/200 2230 Q Units 2230*70% 1561 Z Units 2230*30% 468

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