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Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line. Rotomolded $700 Unit
Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line. Rotomolded $700 Unit selling price Composite $2,000 $1,340 Unit variable costs $420 The company's fixed costs are $608.760. An analysis of the sales mix identifies that rotomolded kayaks make up 80% of the total units sold. * Your answer is incorrect. Determine the break-even point in sales units for Current Designs and identify how many units of each type of kayak will be sold at the break-even point Break-even sales 1800 units Rotomolded Kayaks Composite Kayaks 1440 Break-even sales distribution units units 360 (C) Assume that the sales mix changes, and rotomolded kayaks now make up 70% of total units sold, Calculate the total number of units that would need to be sold to earn a net income of $1.479,440 and identify how many units of each type of kayak will be sold at this level of income. Required sales units Rotomolded Kayaks Composite Kayaks Required sales distribution units units (d) Assume that Current Designs will have sales of $2,100,000 with two-thirds of the sales dollars in rotomolded kayaks and one- third of the sales dollars in composite kayaks. Assuming $488,000 of fixed costs are allocated to the rotomolded kayaks and $120,760 to the composite kayaks, prepare a CVP income statement for each product line. Rotomolded Kayaks Composite Kayaks $ $
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