21- 2 Practice Excercises Sales Mix and Break-Even Analysis Megan Company has fi

Question

21- 2 Practice Excercises Sales Mix and Break-Even Analysis Megan Company has fixed costs of $526,240. 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 Q0 $270 $190 $80 360 240 120 The sales mix for Products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product Q 2,631X units b. Product ZZ2,631X units

Explanation / Answer

a) 2024 units

b)3036 units

PRODUCT UNIT SALES PRICE (A) UNIT VARIABLE COST (B) CONTRIBUTION C = (A-B) % OF SALES (W/N) COMBINED CONTRIBUTION = (C )* % OF SALES QQ 270 190 80 40.00% 32.000 ZZ 360 240 120 60.00% 72.000 104.000 BREAK-EVEN POINT FIXED COST / COMBINED CONTRIBUTION PER UNIT 526240 / 104 5060 UNITS SALES RATIO % OF SALES % OF 5060 QQ 40.00% 2024 ZZ 60.00% 3036 100.00% 5060

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