Heyden Company has fixed costs of 616000 The unit selling pr

Heyden Company has fixed costs of $616,000. 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 $580 $200 320 240 80 The sales mix for Products QQ and ZZ is S096 and 50%, respectively. Determine the break-even point in units of QQ and ZZ If required round your answers to the nearest whole number. a. Product Q0 b. Product zz KP 11:1s

Solution

Question-1

Question-2

Snellville Company\'s operating leverage=Contribution margin/Income from operations

=$320800/ $74600= 4.30 Times.

=3.7 times

BEP ( units ) for the company as a whole = Fixed costs / Weighted avg. CM per unit

$616800/ ( 200 * 0.5 + 80 * 0.5 )

$616800/ 140= 4406 units

Product Q = 4406* 50 % = 2203units

Product Z = 4406 * 50 % = 2203 units