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Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $308,000, and the sales mix is 60% bats

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $308,000, 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 $40 $30
Gloves 100 60

a. Compute the break-even sales (units) for the overall enterprise product, E.

b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?

Baseball bats
Baseball gloves

a. If Canace Company, with a break-even point at $560,000 of sales, has actual sales of $800,000, 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 20%, fixed costs were $1,102,400, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

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