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signme keAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take;&inprogress-false; eBook 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 $218,500, and the sales mix is 70% bats and 30% 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 units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats Baseball gloves units units Work 4/2018

Explanation / Answer

Requirement b Bats Gloves Unit selling price 40 100 Unit variable cost 30 60 Contribution per unit 10 40 Sales Mix 70% 30% 7 12 Weighted Average contribution per unit 19 Break even point (units) = Fixed cost /Weighted average CM per unit Break even point (Units) = 218,500/19 Break even point (Units) = 11,500 units Requirement b Break even point (units) Base ball bats (11500*70%) 8050 Units Base ball Gloves (11500*30%) 3450 Units

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