ACCOUNTING 236-Sales mix and break-even analysis
Question # 00668762
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Updated on: 04/05/2018 10:51 AM Due on: 04/05/2018
Sales mix and break-even analysis
Justin Company has fixed costs of $105,000. 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
AA $50 $35 $15
BB $60 $30 $30
The sales mix for products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB
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Solution: ACCOUNTING 236-Sales mix and break-even analysis