Show Me How Calculator Print Item Sales Mix and Break-Even Sales Dragon Sports I

Question

Show Me How Calculator Print Item Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $134,400, 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 Gloves a. Compute the break-even sales (units) for the overall enterprise product, E $40 $30 100 60 X units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats x units

Explanation / Answer

a Weighted average contribution margin = (40-30)*80%+(100-60)*20%=16 Break even point = 134400/16= 8400 b Bats 6720 =8400*80% Goves 1680 =8400*20%

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