4. Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown: Product Selling Price per Unit Variable Cost per Unit Snowboards $320.00 $170.00 Skis $400.00 $225.00 Poles $50.00 $20.00 Their sales mix is reflected in the ratio 7:3:2. NOTE #2: Units are whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). What is the overall Composite Unit Contribution Margin for Salvador with their current product mix? If annual fixed costs shared by the three products are $196,200, how many units of each product are to be sold in order for Salvador to break even? Snowboards? Skis ? Poles? Determine their break-even point in sales dollars. Snowboards ? Skis? and Poles?
4. Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown: Product Selling Price per Unit Variable Cost per Unit Snowboards $320.00 $170.00 Skis $400.00 $225.00 Poles $50.00 $20.00 Their sales mix is reflected in the ratio 7:3:2. NOTE #2: Units are whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). What is the overall Composite Unit Contribution Margin for Salvador with their current product mix? If annual fixed costs shared by the three products are $196,200, how many units of each product are to be sold in order for Salvador to break even? Snowboards? Skis ? Poles? Determine their break-even point in sales dollars. Snowboards ? Skis? and Poles?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown:
| Product | Selling Price per Unit |
Variable Cost per Unit |
| Snowboards | $320.00 | $170.00 |
| Skis | $400.00 | $225.00 |
| Poles | $50.00 | $20.00 |
Their sales mix is reflected in the ratio 7:3:2.
NOTE #2: Units are whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
What is the overall Composite Unit Contribution Margin for Salvador with their current product mix?
If annual fixed costs shared by the three products are $196,200, how many units of each product are to be sold in order for Salvador to break even?
- Snowboards?
- Skis ?
- Poles?
Determine their break-even point in sales dollars.
- Snowboards ?
- Skis? and
- Poles?
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