Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $313,600, 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 $80 $60 Gloves 200 120 a. Compute the break-even sales (units) for the overall enterprise product, E. fill in the blank 1 units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats fill in the blank 2 units Baseball gloves fill in the blank 3 units
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $313,600, 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 $80 $60 Gloves 200 120 a. Compute the break-even sales (units) for the overall enterprise product, E. fill in the blank 1 units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats fill in the blank 2 units Baseball gloves fill in the blank 3 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sales Mix and Break-Even Sales
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $313,600, 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 | $80 | $60 | ||
| Gloves | 200 | 120 |
a. Compute the break-even sales (units) for the overall enterprise product, E.
fill in the blank 1 units
b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?
| Baseball bats | fill in the blank 2 units |
| Baseball gloves | fill in the blank 3 units |
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