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11:13 AM * 27%) v2.cengagenow.com eans-To... Does Diet... Blackboar... CengageCengag.. Sign in- C Ramirez 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: Selling Price Product Model 94 Model 81 Variable Cost per Unit Contribution Margin per Unit $640 200 $1,600 $960 1,000 800 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 of the overall (total) product, E a. Product Model 94 units b. Product Model 81 Previous Next Check My Work All work saved. Email Instructor Save and Exit Submit Assignment for Grad

Explanation / Answer

Breakeven point in units (for the year) Model 94 Model 81 Selling price per unit 1600 1000 Variable cost per unit 960 800 Contribution Margin per unit 640 200 Constant Mix of units 1 3 Contribution Margin 640 600 Contribution Margin per set 1240 Breakeven point in Sets = Fixed Costs/ Contribution per set                              =$3,565,000/1,240 =2,875 Sets Breakeven point in units Model 94 1 X2,875           2,875 Units Model 81 3 X2,875           8,625 Units

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