Question
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $320,000, and the sales mix is 80% bats
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. Thefixed costsare $320,000, and the sales mix is 80% bats and 20% gloves. The unit selling price and the unitvariable costfor each product are as follows:
Products Unit Selling Price Unit Variable Cost
Bats $80 $60
Gloves 200 120
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 thebreak-even point?
Baseball bats___ units
Baseball gloves ___units
Please give step by step answers.
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