1. Sales Mix and Break-Even Sales
Dragon Sports Inc. manufactures and sells two products, baseballbats and baseball gloves. The fixed costs are $836,000, and thesales mix is 30% bats and 70% gloves. The unit selling price andthe unit variable cost for each product are as follows:
Products Unit Selling Price Unit Variable Cost Bats $70 $50 Gloves 180 110
a. Compute the break-even sales (units) forboth products combined.
units
b. How many units of each product, baseballbats and baseball gloves, would be sold at break-even point?
Baseball bats units Baseball gloves units
2.
Break-Even Sales
Currently, the unit selling price of a product is $240, the unitvariable cost is $200, and the total fixed costs are $476,000. Aproposal is being evaluated to increase the unit selling price to$270.
a. Compute the current break-even sales(units).
units
b. Compute the anticipated break-even sales(units), assuming that the unit selling price is increased to theproposed $270, and all costs remain constant.
units
1. Sales Mix and Break-Even Sales
Dragon Sports Inc. manufactures and sells two products, baseballbats and baseball gloves. The fixed costs are $836,000, and thesales mix is 30% bats and 70% gloves. The unit selling price andthe unit variable cost for each product are as follows:
| Products | Unit Selling Price | Unit Variable Cost | ||
| Bats | $70 | $50 | ||
| Gloves | 180 | 110 | ||
a. Compute the break-even sales (units) forboth products combined.
units
b. How many units of each product, baseballbats and baseball gloves, would be sold at break-even point?
| Baseball bats | units |
| Baseball gloves | units |
2.
Break-Even Sales
Currently, the unit selling price of a product is $240, the unitvariable cost is $200, and the total fixed costs are $476,000. Aproposal is being evaluated to increase the unit selling price to$270.
a. Compute the current break-even sales(units).
units
b. Compute the anticipated break-even sales(units), assuming that the unit selling price is increased to theproposed $270, and all costs remain constant.
units
Related questions
Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $1,179,900. The unit sellingprice, variable cost per unit, and contribution margin per unit forthe company's two products are provided below.
| Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
| Q | $360 | $140 | $220 | ||||||
| Z | 270 | 150 | 120 | ||||||
The sales mix for products Q and Z is 70% and 30%, respectively.Determine the break-even point in units of Q and Z. If required,round your answers to the nearest whole number.
a. Product Q units
b. Product Z units
Sales Mix and Break-Even Sales
Data related to the expected sales of snowboards and skis forWinter Sports Inc. for the current year, which is typical of recentyears, are as follows:
| Products | Unit Selling Price | Unit Variable Cost | Sales Mix | |||
| Snowboards | $190 | $130 | 20% | |||
| Skis | 400 | 190 | 80% | |||
The estimated fixed costs for the current year are $324,000.
Required:
1. Determine the estimated units of sales ofthe overall (total) product necessary to reach the break-even pointfor the current year.
units
2. Based on the break-even sales in units inpart 1, determine the unit sales of both snowboards and skis forthe current year.
| Snowboards: | units |
| Skis: | units |
3. Assume that the sales mix was 80% snowboardsand 20% skis. Determine the estimated units of sales of the overallproduct necessary to reach the break-even point for the currentyear.
units