Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown: Salvador Manufacturing data Product Selling price per unit Variable cost per unit Snowboards $301 $175 Skis 455 204 Poles 79 44 Their sales mix is reflected in the ratio 8:2:8. If annual fixed costs shared by the three products are $136,431, how many composite units will need to be sold in order for Salvador to break even?
Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown: Salvador Manufacturing data Product Selling price per unit Variable cost per unit Snowboards $301 $175 Skis 455 204 Poles 79 44 Their sales mix is reflected in the ratio 8:2:8. If annual fixed costs shared by the three products are $136,431, how many composite units will need to be sold in order for Salvador to break even?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11EA: Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable...
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Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown:
Salvador Manufacturing data
Product | Selling price per unit | Variable cost per unit |
---|---|---|
Snowboards | $301 | $175 |
Skis | 455 | 204 |
Poles | 79 | 44 |
Their sales mix is reflected in the ratio 8:2:8. If annual fixed costs shared by the three products are $136,431, how many composite units will need to be sold in order for Salvador to break even?
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