Question
Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $795,600, and
Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $795,600, and the sales mix is 20% bats and 80% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Bats Gloves Unit Selling Price $80 200 Unit Variable Cost $60 120 a. Compute the break-even sales (units) for both products combined. 117,000 X units b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point? Baseball bats Baseball gloves Feedback 93,600 X units 23,400 X units Check My Work a. Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to obtain total break-even units. b. Multiply the break-even units by the percentage of each component.
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