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Question - Information about two products is as follows:
Product E Product Z
Selling price per unit $40 $65
Variable costs per unit 15 45
Contribution margin per unit $25 $20
The firm expects 80 percent of its sales (in units) to be Product E (a sales mix of 8:2). Fixed costs are expected to be $90,000.
What the break-even point in units for Products E and Z respectively in units?
A. 4,000 units & 1,000 units
B. 600 units & 150 units
C. 8,000 units & 2,000 units
D. 3,000 units & 750 units
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