1. Break-Even Sales

Currently, the unit selling price of a product is $340, the unit variable cost is $280, and the total fixed costs are $960,000. A proposal is being evaluated to increase the unit selling price to $380.

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 the proposed $380, and all costs remain constant. _______ units

2.

Sales Mix and Break-Even Sales

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $615,600, and the sales mix is 70% bats and 30% gloves. The unit selling price and the unit variable cost for each product are as follows:

Products	Unit Selling Price		Unit Variable Cost
Bats	$80		$60
Gloves	200		120

a. Compute the break-even sales (units) for both products combined. ________ units

b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?

Baseball bats	______ units
Baseball gloves	______ units