purse: 2020FA Accounting for * CengageNoWv2 | Online teachir x 2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker3&takeAs... еВook Calculator Sales Mix and Break-Even Sales Data related to the expected sales of kayaks and canoes for River Sports Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Kayaks $240 $160 20% Canoes 510 240 80% The estimated fixed costs for the current year are $273,760. Instructions: 1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units 2. Based on the break-even sales (units) in part (1), determine the unit sales of both kayaks and canoes for the current year. Kayaks units Canoes units Assume that the sales mix was 80% Kayaks and 20% canoes. Determine the estimated units of sales of the overall product necess reach the break-even point for the current year. units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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### Sales Mix and Break-Even Sales

Data related to the expected sales of kayaks and canoes for River Sports Inc. for the current year, which is typical of recent years, are as follows:

| Products | Unit Selling Price | Unit Variable Cost | Sales Mix |
|----------|--------------------|--------------------|-----------|
| Kayaks   | $240               | $160               | 20%       |
| Canoes   | $510               | $240               | 80%       |

The estimated **fixed costs** for the current year are **$273,760**.

#### Instructions:

1. **Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.**
   - [Input Field] units

2. **Based on the break-even sales (units) in part (1), determine the unit sales of both kayaks and canoes for the current year.**
   - Kayaks: [Input Field] units
   - Canoes: [Input Field] units

3. **Assume that the sales mix was 80% Kayaks and 20% Canoes. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.**
   - [Input Field] units
Transcribed Image Text:### Sales Mix and Break-Even Sales Data related to the expected sales of kayaks and canoes for River Sports Inc. for the current year, which is typical of recent years, are as follows: | Products | Unit Selling Price | Unit Variable Cost | Sales Mix | |----------|--------------------|--------------------|-----------| | Kayaks | $240 | $160 | 20% | | Canoes | $510 | $240 | 80% | The estimated **fixed costs** for the current year are **$273,760**. #### Instructions: 1. **Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.** - [Input Field] units 2. **Based on the break-even sales (units) in part (1), determine the unit sales of both kayaks and canoes for the current year.** - Kayaks: [Input Field] units - Canoes: [Input Field] units 3. **Assume that the sales mix was 80% Kayaks and 20% Canoes. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.** - [Input Field] units
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