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Sales Mix and Break-Even Sales Dragon Sports Inc., manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $266,000, and the
Sales Mix and Break-Even Sales Dragon Sports Inc., manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $266,000, and the sales mix is 80% bats and 20% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats 560 $50 Gloves 150 90 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales $4,032,000 Cost of goods sold $1,008,000 Selling general and administration 280,000 $1,288,000 Income from operations $ 2,744,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 28,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that Anheuser-Busch InBev expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $11,800. a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels
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