Sales Mix and Break-Even Sales
Data related to the expected sales of snowboards and skis for Winter Sports Inc. for the current year, which is typical of recent years, are as follows:
Products Unit Selling Price Unit Variable Cost Sales Mix Snowboards $210 $140 20% Skis 540 250 80%
The estimated fixed costs for the current year are $280,440.
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 snowboards and skis for the current year.
Snowboards _________________ units Skis _________________ units
3. Assume that the sales mix was 80% snowboards and 20% skis. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
_________________ units
4. Based upon the break-even sales (units) in part (3), determine the unit sales of snowboards and skis for the current year.
Snowboards _________________ units Skis _________________ units
5. The overall enterprise break-even point _________________ from (1) to (3) because the sales mix is weighted more toward the product with the _________________ contribution margin per unit of product.
Sales Mix and Break-Even Sales
Data related to the expected sales of snowboards and skis for Winter Sports Inc. for the current year, which is typical of recent years, are as follows:
Products | Unit Selling Price | Unit Variable Cost | Sales Mix | |||
Snowboards | $210 | $140 | 20% | |||
Skis | 540 | 250 | 80% |
The estimated fixed costs for the current year are $280,440.
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 snowboards and skis for the current year.
Snowboards | _________________ units |
Skis | _________________ units |
3. Assume that the sales mix was 80% snowboards and 20% skis. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
_________________ units
4. Based upon the break-even sales (units) in part (3), determine the unit sales of snowboards and skis for the current year.
Snowboards | _________________ units | |
Skis | _________________ units |
5. The overall enterprise break-even point _________________ from (1) to (3) because the sales mix is weighted more toward the product with the _________________ contribution margin per unit of product.