Question
Data related to the expected sales of snowboards and skis for Winter Sports Inc. for the current year, which is typical of recent years, are
Data related to the expected sales of snowboards and skis for Winter Sports Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Snowboards $270 $180 30% Skis 470 220 70% The estimated fixed costs for the current year are $1,115,040.
Required: 1. Determine the estimated units of sales of the overall (total) product necessary to reach the break-even point for the current year.
units
2. Based on the break-even sales in units in part 1, determine the unit sales of both snowboards and skis for the current year.
Snowboards: units
Skis: units
3. Assume that the sales mix was 70% snowboards and 30% skis. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
units
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