Question

Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $334,400, and the sales mix is 60% bats and 40% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for both products combined. x units b. How many units of each product, baseball bats and baseball gloves, would be sold at break- even point? Baseball bats X units Baseball gloves X units Feedback Check My Work Previous Next >

Answer 1

Weighted average unit contribution margin

= (40-30)*60% + (100-60)*40%

= 22

Breakeven point = Fixed cost/Weighted average contribution margin

= 334,400/22

= 15,200

.

Baseball bats = 15,200*60% = 9120

Baseball gloves = 15,200*40% = 6080