Question

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs...

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $144,000, and the sales mix is 80% bats and 20% gloves. The unit selling price and the unit variable cost for each product are as follows:

Products Unit Selling Price Unit Variable Cost
Bats $60 $50
Gloves 150 90

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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