Question

Conley Company has fixed costs of $23,415,000. 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 Yankee $295 $120 $175 Zoro 235 160 75 The sales mix for products Yankee and Zoro is 30% and 70%, respectively. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet

Determine the break-even point in units of Yankee and Zoro of the overall (total) product, E. If required, round your answers to the nearest whole number.

Answer 1

Yankee = 66,900 units

Zoro = 156,100 units

Step-by-step explanation:

Break Even Point = Fixed Costs / Contribution per unit

= $23,415,000 / ((3×$175) + (7×$75))

= $23,415,000 / $1,050

= 22,300

Yankee = 22,300×3

= 66,900

Zoro = 22,300×7

= 156,100