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 funits) 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.

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 funits) 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.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.17E: Variable cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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