Question

# Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and...

Sales Mix and Break-Even Sales

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are \$195,000, 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 \$60 \$50 Gloves 150 90

a. Compute the break-even sales (units) for the overall enterprise product, E.
fill in the blank 1 units

b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?

 Baseball bats fill in the blank Baseball gloves fill in the blank

 baseball bats baseball gloves Total i Sales price 60 150 ii variable cost 50 90 iii=i-ii Contribution margin 10 60 iv mix 70% 30% v=iii*iv Contribution margin mix \$         7.00 \$           18.00 \$   25.00 Ans 1 = Fixed cost = 195,000 Breakeven mix = 7,800 195000/25 ans = 7,800 units Ans 2= Baseball bats= 7800*70% 5,460 baseball gloves= 7800*30% 2,340

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