Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $452,600, and the sales mix is 30% bats and 70% 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 $452,600, and the sales mix is 30% bats and 70% 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sales Mix and Break-Even Sales
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $452,600, and the sales mix is 30% bats and 70% 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 |
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