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		$400				$240				80%
Canoes		800				480				20%

The estimated fixed costs for the current year are $1,440,000.

Instructions:

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

2. Based on the break-even sales (units) in part (1), determine the unit sales of kayaks and canoes for the current year.

kayaks	units
canoes	units

3. Assume that the sales mix was 20% kayaks and 80% canoes. Determine the estimated units of sales of overall product necessary to reach the break-even point for the current year. 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	units
canoes	units