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	$280	$190	30%
Canoes	470	220	70%

The estimated fixed costs for the current year are $836,280.

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 ___________ 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 __________ units Canoes fill in the blank __________ 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 __________ 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 _________ units Canoes fill in the blank _________ units

5. The overall enterprise break-even point fill in the blank (increased or decreased) from (1) to (3) because the sales mix is weighted more toward the product with the fill in the blank (higher or lower) contribution margin per unit of product.