Sales Mix and Break-Even Sales

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

Products	Unit Selling Price		Unit Variable Cost		Sales Mix
Snowboards	$220		$150		40%
Skis	340		160		60%

The estimated fixed costs for the current year are $620,160.

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 both snowboards and skis for the current year.

Snowboards	units
Skis	units

3. Assume that the sales mix was 60% snowboards and 40% skis. Determine the estimated units of sales of the 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 snowboards and skis for the current year.

Snowboards		units
Skis		units

5. The overall enterprise break-even point selectincreaseddecreasedItem 7 from (1) to (3) because the sales mix is weighted more toward the product with the selecthigherlowerItem 8 contribution margin per unit of product.