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Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Product Selling Price per Unit Variable Cost
Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows:
Product | Selling Price per Unit | Variable Cost per Unit |
Snowboards | $320 | $160 |
Skis | $410 | $200 |
Poles | $60 | $30 |
Their sales mix is reflected in the ratio 7:3:1. If annual fixed costs shared by the three products are $195,800, how many units of each product will need to be sold in order for Salvadores to break even?
Product | Ratio (mix) | Break-even per composite unit | Number of Units per product |
Snowboards | 7 | fill in the blank 1 | fill in the blank 2 |
Skis | 3 | fill in the blank 3 | fill in the blank 4 |
Poles | 1 | fill in the blank 5 | fill in the blank 6 |
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