FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 $273,000, 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 $60   $50  
Gloves 150   90  

a.  Compute the break-even sales (units) for both products combined.
fill in the blank 1 units

b.  How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?

Baseball bats fill in the blank 2 units
Baseball gloves fill in the blank 3 units
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