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Salvadores Manufacturing builds and sells snowboards, skis and poles. The sale price and variable cost for each follows: Selling Price Variable Cost Product per Unit
Salvadores Manufacturing builds and sells snowboards, skis and poles. The sale price and variable cost for each follows: Selling Price Variable Cost Product per Unit per Unit Snowboards $320 $180 SK $410 $230 Poles $60 $10 The sales mix is reflected in the ratio 6:011. If annual fixed costs shared by the three products are $225,400, how many units of each product will need to be sold in order for Salvadores to break even? Break-even per Number of Units Product Ratio (mix) composite unit per product Snowboards 6 1,540 X Skis x 840 4 560 Poles 1407 Foto Check My Wor Determine the contribution margin for each item. Multiply the contribution margin by the corresponding ratio factor for each item. Add all three amounts to obtain the overall unit contribution margin. The break-even per composite unit is determined by dividing the overall unit contribution margin into the annual fixed costs Use these amounts to apply the ratio to determine the number of units per product
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