Sales Mix and Break$-$Even Sales

Data related to the expected sales of kayaks and canoes for River Sports Inc. for the current year, which is typical of recent years, are as follows:

Products Unit Selling Price Unit Variable Cost Sales Mix

Kayaks $$180$ $$12030\%$

Canoes $37017070\%$

The estimated fixed costs for the current year are $$161,160.$

Instructions:

$1.$ Determine the estimated units of sales of the overall product necessary to reach the break$-$even point for the current year.

fill in the blank $1$ of $1$

units

$2.$ Based on the break$-$even sales $($units$)$ in part $(1),$ determine the unit sales of both Kayaks and Canoes for the current year.

Kayaks fill in the blank $1$ of $2$

units

Canoes fill in the blank $2$ of $2$

units

$3.$ Assume that the sales mix was $70\%$ Kayaks and $30\%$ Canoes. Determine the estimated units of sales of the overall product necessary to reach the break$-$even point for the current year.

fill in the blank $1$ of $1$

units

$4.$ Based upon the break$-$even sales $($units$)$ in part $(3),$ determine the unit sales of Kayaks and Canoes for the current year.

Kayaks fill in the blank $1$ of $2$

units

Canoes fill in the blank $2$ of $2$

units

$5.$ The overall enterprise break$-$even point fill in the blank $1$ of $2$

from $(1)$ to $(3)$ because the sales mix is weighted more toward the product with the fill in the blank $2$ of $2$

contribution margin per unit of product.