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Sports Products, Inc., produces three different toy footballs with the following annual data: Glow Basic Extreme Total Selling price per unit $10 $4 $12 Variable

Sports Products, Inc., produces three different toy footballs with the following annual data:

Glow

Basic

Extreme

Total

Selling price per unit

$10

$4

$12

Variable cost per unit

$ 3

$1

$ 3

Expected unit sales

8,000

10,000

22,000

40,000

Sales mix

20 percent

25 percent

55 percent

100 percent

Fixed costs

$205,900

Assume the sales mix remains the same at all levels of sales.

Required:

(Round all answers to the nearest cent and nearest unit where appropriate.)

  1. Calculate the weighted average contribution margin per unit.
  2. How many units in total must be sold to break even?
  3. How many units of each product must be sold to break even?
  4. How many units in total must be sold to earn an annual profit of $200,000?
  5. How many units of each product must be sold to earn an annual profit of $200,000?

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