Rosenberg Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $792,000, and the sales mix is 20% bets and 80% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $70 $50 110 Gloves 180 a. Compute the break-even sales (units) for the overall company's mix of product, M. X units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units units Baseball gloves
Rosenberg Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $792,000, and the sales mix is 20% bets and 80% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $70 $50 110 Gloves 180 a. Compute the break-even sales (units) for the overall company's mix of product, M. X units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units units Baseball gloves
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sales mix and break-even sales
Rosenberg Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $792,000, and the sales mix is 20% bets and 80%
gloves. The unit selling price and the unit variable cost for each product are as follows:
Products
Unit Selling Price
Unit Variable Cost
Bats
$70
$50
110
Gloves
180
Compute the break-even sales (units) for the overall company's mix of product, M.
4 X units
b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?
Baseball bats
units
units
Baseball gloves
Check My Work
a. Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to obtain total
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