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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
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 Kayaks Canoes $400 800 Sales Mix $240 80% 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 Canoes units 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 Canoes units units 5. The overall enterprise break-even point decreased from (1) to (3) because the sales mix is weighted more toward the product with the higher contribution margin per unit of product. Feedback
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