1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. 2. Based on the break-even sales (units) in part (1), determine the unit sales of both kayaks and canoes for the current year. 3. Assume that the sales mix was 80% Kayaks and 20% canoes. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3PB
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Sales Mix and Break-Even Sales
Data related to the expected sales of kayaks and canoes for River Sports Inc. for the current year,
which is typical of recent years, are as follows:
Products
Unit Selling Price Unit Variable Cost Sales Mix
Kayaks
$240
$160
20%
Canoes
510
240
80%
The estimated fixed costs for the current year are $273,760.
Instructions:
1. Determine the estimated units of sales of the overall product necessary to reach the break-even
point for the current year.
2. Based on the break-even sales (units) in part (1), determine the unit sales of both kayaks and
canoes for the current year.
3. Assume that the sales mix was 80% Kayaks and 20% canoes. Determine the estimated units of
sales of the overall product necessary to reach the break-even point for the current year.
4. Based upon the break-even sales (units) in part (3), determine the unit sales of kayaks and
Canoes for the current year.
5. The overall enterprise break-even point from (1) to (3) because the sales mix is weighted more
toward the product with the contribution margin per unit of product.
DFocus
Transcribed Image Text:Sales Mix and Break-Even Sales Data related to the expected sales of kayaks and canoes for River Sports Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Kayaks $240 $160 20% Canoes 510 240 80% The estimated fixed costs for the current year are $273,760. Instructions: 1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. 2. Based on the break-even sales (units) in part (1), determine the unit sales of both kayaks and canoes for the current year. 3. Assume that the sales mix was 80% Kayaks and 20% canoes. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. 4. Based upon the break-even sales (units) in part (3), determine the unit sales of kayaks and Canoes for the current year. 5. The overall enterprise break-even point from (1) to (3) because the sales mix is weighted more toward the product with the contribution margin per unit of product. DFocus
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