Sales Mix and Break-Even Analysis
Olmstead Company has fixed costs of $2,280,200. 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
QQ
ZZ
$550
740
$290
480
$260
260
The sales mix for Products QQ and ZZ is 70% and 30%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the
nearest whole number.
a. Product QQ
units
b. Product ZZ
units