Data related to the expected sales of golf balls and tennis balls for Medalist Inc. for the current year, which is typical of recent years, are as follows:

The estimated fixed costs for the current year are $222,610.

Instructions
1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
2. Based on the break-even sales (units) in (1), determine the unit sales of both golf balls and tennis balls for the current year.
3. Assume that the sales mix was 70% golf balls and 30% tennis balls. Compare the break-even point with that in (1). Why is it sodifferent?

Transcribed Image Text:

Products Golf balls Tennis balls Unit Selling Price Unit Variable Cost Sales Mix 30% 70% $36.00 $10.00 8.00 3.00