Multiple-Product Break-even Andrews Sporting Goods, Inc., produces and sells children's softball mitts: vinyl mitts and basic leather mitts. Last year, Andrews sold 13,650 vinyl mitts and 4,550 leather mitts. Information on the two products is as follows: Vinyl Mitts Leather Mitts Price Variable cost per unit Total fixed cost is $91,560. Required: (Round break-even packages to four significant digits and break-even units to the nearest whole unit.) 1. What is the sales mix of vinyl mitts and leather mitts? $7.70 3.70 $24.90 The break-even quantity for vinyl mitts is 2. Compute the break-even quantity of each product. The break-even quantity for leather mitts is 15.10
Multiple-Product Break-even Andrews Sporting Goods, Inc., produces and sells children's softball mitts: vinyl mitts and basic leather mitts. Last year, Andrews sold 13,650 vinyl mitts and 4,550 leather mitts. Information on the two products is as follows: Vinyl Mitts Leather Mitts Price Variable cost per unit Total fixed cost is $91,560. Required: (Round break-even packages to four significant digits and break-even units to the nearest whole unit.) 1. What is the sales mix of vinyl mitts and leather mitts? $7.70 3.70 $24.90 The break-even quantity for vinyl mitts is 2. Compute the break-even quantity of each product. The break-even quantity for leather mitts is 15.10
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Multiple-Product Break-even
Andrews Sporting Goods, Inc., produces and sells children's softball mitts: vinyl mitts and basic leather mitts. Last year, Andrews sold 13,650 vinyl mitts and 4,550
leather mitts. Information on the two products is as follows:
Vinyl Mitts
Price
$7.70
3.70
Leather Mitts
Variable cost per unit
Total fixed cost is $91,560.
Required: (Round break-even packages to four significant digits and break-even units to the nearest whole unit.)
1. What is the sales mix of vinyl mitts and leather mitts?
The break-even quantity for vinyl mitts is
$24.90
2. Compute the break-even quantity of each product.
The break-even quantity for leather mitts is
15.10
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