Data related to the expected sales of snowboards and skis for Winter Sports, Inc

Question

Data related to the expected sales of snowboards and skis for Winter Sports, Inc. for the current year, which is typical of recent years, are as follows:

The estimatedfixed costsfor the current year are $420,000.

1. Determine the estimated units of sales of the overall product necessary to reach thebreak-even pointfor the current year.
units

2. Based on the break-even sales in units in part 1, determine the unit sales of both snowboards and skis for the current year.

Snowboards: units Skis: units

Data related to the expected sales of snowboards and skis for Winter Sports, Inc. for the current year, which is typical of recent years, are as follows: The estimatedfixed costsfor the current year are $420,000. 1. Determine the estimated units of sales of the overall product necessary to reach thebreak-even pointfor the current year. units 2. Based on the break-even sales in units in part 1, determine the unit sales of both snowboards and skis for the current year. Snowboards: units Skis: units

Explanation / Answer

1, sales mix is 40:60 (snowboards/skis) one bundle would be 2 snowboards and 3 skis (this is 40:60 ratio) CM for snowboards is 250 - 170 = 80 CM for skis = 340 - 160 = 180 CM for one bundle = 2*80 + 3*180 = 700 420,000/700 = 600 bundles 600 bundles = 2*600 snowbards + 3*600 skis = 1200 + 1800 for a total of 3000 units answer: 3000 units 2. snowbaords = 1200 units skis = 1800 units

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.