Sales Mix and Break-Even Analysis Hughes Company has fixed costs of $3,565,000. The unit selling...
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Accounting
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 companys two products follow:
Product
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
Model 94
$1,600
$960
$640
Model 81
1,000
800
200
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 units
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