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Determine the break-even point in units of AA and BB

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Problem - Wide Open Industries Inc. has fixed costs of $475,000. 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

AA

$145

$105

$40

BB

110

75

35

Required - The sales mix for Products AA and BB is 60% and 40%, respectively. Determine the break-even point in units of AA and BB.

Reference no: EM132716433

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