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Sales mix and break-even analysis Conley Company has fixed costs of $12,483,000. 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 $150 $90 $60 Zoro 270 220 50 The sales mix for products Yankee and Zoro is 70% and 30%, 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.
a. Product Model 94 ____ units

b. Product Model 81 ____ units

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TomShelby

Answer:

Break even point in units:

Yankee:  153,300

Zoro:        65,700

Explanation:

weighted Yankee contribution: $ 60 x 70%  = $ 42

weighted Zoro contribution:     $ 50 x 30%  = $  15

                 Mix contribution:                              $ 57

Then, calcualte the break even point at which the company afford his 12,483,000 fixed cost:

[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]

12,483,000 / 57 = 219,000 sales mix units

we now assing the weight to each one:

Yankee: 219,000 x 70% =  153,300

Zoro:     219,000 x  30% =   65,700

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