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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 Composite $700
Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line. Rotomolded Composite $700 $2.000 Unit selling price Unit variable costs $420 $1.340 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 (b) X 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 Break-even sales distribution 1440 units 360 units Town (c) * Your answer is incorrect 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 5590 units Rotomolded Kayaks Composite Kayaks Required sales distribution 3913 units 1677 units
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