Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $483,000, and the sales mix is 80% bats and 20% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost 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

Question

Sales Mix and Break-Even Sales

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $483,000, and the sales mix is 80% bats and 20% gloves. The unit selling price and the unit variable cost for each product are as follows:

Products Unit Selling Price Unit Variable Cost
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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