FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Sales Mix and Break-Even Sales
Home Run Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $397,800, and the sales mix is
40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows:
Unit Selling Price
Unit Variable Cost
Products
Bats
$50
130
$40
80
Gloves
a. Compute the break-even sales (units) for the overall product, E.
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
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Transcribed Image Text:Sales Mix and Break-Even Sales Home Run Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $397,800, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Unit Selling Price Unit Variable Cost Products Bats $50 130 $40 80 Gloves a. Compute the break-even sales (units) for the overall product, E. 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
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