Question
Outdoors Company sells a product for $185 per unit. The variable cost is $100 per unit, and fixed costs are $671,500. Determine (a) the break-even
Outdoors Company sells a product for $185 per unit. The variable cost is $100 per unit, and fixed costs are $671,500.
Determine (a) the break-even point in sales units and (b) the sales units required to achieve a target profit of $208,165.
a. Break-even point in sales units | units | |
b. Break-even point in sales units required to achieve a target profit of $208,165 | units |
Home Run Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $712,000, 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 | $95 | $55 | ||
Gloves | 115 | 75 |
a. Compute the break-even sales (units) for the overall product, E. fill in the blank 1 units
b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?
Baseball bats | |
Baseball gloves |
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