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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 $437,500, 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 $437,500, and the sales mix is 70% bats and 30% gloves. The unit selling price and the unit variable cost for each product are as follows:
Products | Unit Selling Price | Unit Variable Cost | ||
Bats | $70 | $50 | ||
Gloves | 180 | 110 |
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 |
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