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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 $907,200, 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 $907,200, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows:
Products | Unit Selling Price | Unit Variable Cost | ||
Bats | $80 | $60 | ||
Gloves | 200 | 120 |
a. Compute the break-even sales (units) for both products combined. units
b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?
Baseball bats | units |
Baseball gloves | units |
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