Multiple-Product Break-even, Break-Even Sales Revenue

Andrews Sporting Goods, Inc., produces and sells children's softball mitts: vinyl mitts and basic leather mitts. Last year, Andrews sold 24,000 vinyl mitts and 12,000 leather mitts. Information on the two products is as follows:

Line Item Description	Vinyl Mitts	Leather Mitts
Price	$10	$16
Variable cost per unit	6	10

Total fixed cost is $101,500.

Suppose that in the coming year, the company plans to produce an autographed mitt. The company estimates that 6,000 autographed mitts can be sold at a price of $21 and a variable cost per unit of $10. Total fixed cost must be increased by $33,830 (making total fixed cost $135,330). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same.

1.Compute the break-even quantity of each product. (Round break-even packages to four significant digits and break-even units to the nearest whole unit.)

2.What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note:Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.)