Sales Mix and Break-Even SalesDragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $445,000, and the sales mix is40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows:Unit Selling PriceUnit Variable CostProductsBats$70$50Gloves180110a. Compute the break-even sales (units) for both products combined.unitsb. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?Baseball batsunitsBaseball glovesunits

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Asked Oct 31, 2019
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Sales Mix and Break-Even Sales
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $445,000, 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:
Unit Selling Price
Unit Variable Cost
Products
Bats
$70
$50
Gloves
180
110
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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Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $445,000, 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: Unit Selling Price Unit Variable Cost Products Bats $70 $50 Gloves 180 110 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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Expert Answer

Step 1

Compute break-even sales units for both products.

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Fixed costs Break-even point in Sales Contribution margin per unit S445, 000 (S70-S50) x40% (S180-S110) + x60% $445,000 $30 14, 833 units

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Step 2

Compute break-even point in sales units ...

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