Question
Jim Slugger Inc manufactures only two products; wooden baseball bats and titanium baseball bats. The company has provided the following financial information for the past
Jim Slugger Inc manufactures only two products; wooden baseball bats and titanium baseball bats. The company has provided the following financial information for the past year.
Product | Contribution margin per unit | Sales Quantity |
Titanium bat | $11 | 40,000 UNITS |
wooden bat | $13 | 60,000 UNITS |
Total fixed costs for the year amounted to 1,100,000
a) Calculate the weigthed -average contribution margin per unit
b) Assuming the past year's sales mix is maintained how many titanium bats and wooden bats have to be sold during the year in order to break even?
C) prove that selling 84,636 titanium bats and 1300 wooden bats is approximately another combination or break even quantities
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