Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $188,100, and the sales mix is 70% bats and 30% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $188,100, and the sales mix is 70% bats and 30% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In what sense is the WACC an average cost? A marginal cost?
Would an increase in per-unit selling price cause a company’s break-even point to increase or decrease? Why?
Why short selling are risky than buying margin?
What is the arm's length principle and how does it relate to transfer pricing?
How does targeted profit enter into the break-even units equation?
What is the break-even point in sales units? (see attached)
How can the expected sales for a product group be converted into expected unit sales ?
How to calculate the net profit margin ratio?
Based on the facts of Easy Problems Corp. The margin of safety ratio (MSR) and the break-even sales ratio (BESR) are?
What are the answers for the following? Construct a cost-volume-profit chart on your own paper. What is the break-even sales? What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage. Round to one decimal place.
What effect does an increase in sales price have on contribution margin? An increase in fixed costs? An increase in variable costs?
What's the expected profit at break-even in a cost-volume-profit analysis?