Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $207,200. Th

ID: 2556232 • Letter: S

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Sales Mix and Break-Even Analysis

Heyden Company has fixed costs of $207,200. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:

The sales mix for Products QQ and ZZ is 20% and 80%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.

a. Product QQ units

b. Product ZZ units

Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $190 $80 $110 ZZ 140 80 60

Explanation / Answer

QQ ZZ Selling Price 190 140 Variable Cost 80 80 Contribution Margin 110 60 Fixed Cost (20:80) 41440 165760 BEP(Fixed Cost/Contribution) 367.73 2762.67 BEP Units Round Off 368 2763

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Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $207,200. Th

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