1. Sales Mix and Break-Even Sales

Home Run Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $652,000, and the sales mix is 60% bats and 40% gloves. The unit selling price and the 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) for the overall product, E. fill in the blank 1 units

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

Baseball bats	fill in the blank 2 units
Baseball gloves	fill in the blank 3 units

2. Margin of Safety

a. If Del Rosario Company, with a break-even point at $218,400 of sales, has actual sales of $390,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number.

1. $fill in the blank 1

2. fill in the blank 2%

b. If the margin of safety for Del Rosario Company was 30%, fixed costs were $1,600,200, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $fill in the blank 3