Answered

Join IDNLearn.com to access a wealth of knowledge and get your questions answered by experts. Our Q&A platform offers reliable and thorough answers to help you make informed decisions quickly and easily.

Megan Company has fixed costs of $429,450. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Q $320 $150 $170 Z 220 180 40 The sales mix for products Q and Z is 50% and 50%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number. a. Product Q fill in the blank 1 units b. Product Z fill in the blank 2 units

Sagot :

TutorAnneidn

Answer:Break-even point (units)= 4,090units  ,  

a. Product Q -2,045 units

b. Product Z -2,045 units

Explanation:

Given

Product Selling Price Variable Cost per Unit Contribution Margin per Unit Q                   $320                       $150                             $170

Z                    220                          180                                 40

Using the formulae

Break-even point (units)= Total fixed costs / Weighted average contribution margin

But weighted Q contribution: $170 x 50%  = $ 85

weighted Z contribution:     $ 40 x 50%  = $  20

Total Mix contribution(Weighted average contribution margin)=$105

Break-even point (units)= $429,450/ $105

Break-even point (units)= 4,090units

Now, for each product:

Q= 4,090units x 50%= 2,045 units  

Z= 4,090units x 50%= 2,045 units

Therefore,

a. Product Q -2,045 units

b. Product Z -2,045 units

Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Accurate answers are just a click away at IDNLearn.com. Thanks for stopping by, and come back for more reliable solutions.