Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two pro

Question

Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $360,000, and the sales mix is 40% bats and 60% 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. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Bats Gloves Total Selling price per unit                         60.00                      150.00 Variable cost per unit                         50.00                        90.00 Contribution per unit                         10.00                        60.00 Sales Mix 40% 60% Weighted contribution per unit                            4.00                        36.00                        40.00 Fixed costs             360,000.00 break-even sales = 360,000/40                  9,000.00 Units of each product = 9000*Sales mix                   3,600.00                  5,400.00                  9,000.00

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