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Break-Even Sales Currently, the unit selling price of a product is $390, the unit variable cost is $320, and the total fixed $1,008,000. A proposal
Break-Even Sales Currently, the unit selling price of a product is $390, the unit variable cost is $320, and the total fixed $1,008,000. A proposal is being evaluated to increase'the unit selling price to $440. a. Compute the current break-even sales (units). units b. C ompute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $440, and all costs remain constant units Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $292,000, 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 $50 110 Gloves 180 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? units Baseball bats units Baseball gloves Margin of Safety a. If Canace Company, with a break-even point at $462,000 of sales, has actual sales of $550,000, 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. 2. b. If the margin of safety for Canace Company was 30%, fixed costs were $1,491,000, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)
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