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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 |
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Total Fixed Costs (FC): $108,500 |
- Determine the sales mix percentage (%) for the three products.
- Determine the contribution margin (CM) per unit for each of the three products.
- Calculate the weighted average contribution margin (WACM) per unit (round your final answer to two decimal places).
- Calculate the total number of units that Goalies Balls must sell to break-even. Round up to the nearest whole unit.
- Based on sales mix, calculate the number of units of each type of ball that would be sold at the firms break-even point.
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