Answer:
The break-even point in units of QQ and ZZ is 1,750 units and 2,625 units respectively
Explanation:
In this question, we use the combined break even point which is shown below:
Combined break even point = Fixed cost ÷ weighatge contribution margin per unit
where,
Weighted contribution margin per unit = $15 × 40% + $30 × 60%
= $6 + $18
= $24
And, the fixed cost is $105,000
Now put these values to the above formula
So, the value would equal to
= $105,000 ÷ $24
= 4,375 units
For products QQ = 4,375 units × 40% = 1,750 units
For product ZZ = 4,375 units × 60% = 2,625 units
