Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Sales mix and CVP Analysis : Goalies Ball, Inc. produces and sells three different types of soccer balls: basic, deluxe, and pro. Monthly information

3. Sales mix and CVP Analysis: Goalies Ball, Inc. produces and sells three different types of soccer balls: basic, deluxe, and pro. Monthly information regarding the three types of balls are shown below:

Basic

Deluxe

Pro

Sales volume (Units)

5,500

4,000

500

Price per unit

$20.00

$35.00

$60.00

VC per unit

$8.00

$19.00

$32.00

Total Fixed Costs (FC): $108,500

  1. Determine the sales mix percentage (%) for the three products.
  2. Determine the contribution margin (CM) per unit for each of the three products.
  3. Calculate the weighted average contribution margin (WACM) per unit (round your final answer to two decimal places).
  4. Calculate the total number of units that Goalies Balls must sell to break-even. Round up to the nearest whole unit.
  5. Based on sales mix, calculate the number of units of each type of ball that would be sold at the firms break-even point.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Michael J. Jones

1st Edition

0470058986, 978-0470058985

More Books

Students also viewed these Accounting questions