Sales Mix and Break-Even Analysis Hughes Company has fixed costs of $3,565,000. The unit selling...
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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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