Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $319,300, 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 $40 $30 Bats Gloves 100 60 a. Compute the break-even sales (units) for both products combined. 31,930 X units b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point? 9,579 X units Baseball bats 22,351 X units Baseball gloves
Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $319,300, 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 $40 $30 Bats Gloves 100 60 a. Compute the break-even sales (units) for both products combined. 31,930 X units b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point? 9,579 X units Baseball bats 22,351 X units Baseball gloves
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Sales Mix and Break-Even Sales
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $319,300, 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
$40
$30
Bats
Gloves
100
60
a. Compute the break-even sales (units) for both products combined.
31,930 X units
b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?
9,579 X units
Baseball bats
22,351 X units
Baseball gloves
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