Ramirez Corporation sells two types of computer chips. The sales mix is 30% (Q-Chip) and 70% (Q-Chip Plus). Q-Chip has variable costs per unit of $36 and a selling price of $60. Q-Chip Plus has variable costs per unit of $42 and a selling price of $78. Ramirez\'s fixed costs are $540,000. How many units of Q-Chip would be sold at the break-even point? a) 5063 b)5869 c) 9000 d) 11813 Solution Answer is closet to (a) 5063 units Formulas and Calculation Procedure Following information is related to sales mix of product Q, and Q plus. Product Q Q plus Sales Price per Unit $60 $78 Variable Cost per Unit $36 $42 Sales Mix Percentage 30% 70% Total Fixed Cost $540,000 Calculate the break-even point in units. Calculation Step 1 : Calculate the contribution margin per unit for each product: Product Q Q.plus Sales Price per Unit $60 $78 ? Variable Cost per Unit $36 $42 Contribution Margin per Unit $24 $36 Step 2 : Calculate the weighted-average contribution margin per unit for the sales mix using the following formula: Product A CM per Unit .