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Problem - Sales Mix and Break-Even Analysis
Figg Inc. has fixed costs of $420,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.
Product
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
L
$100
$80
$20
M
80
62
18
The sales mix for products L and M is 60% and 40%, respectively. Determine the breakeven point in units of L and M.
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