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Category > Management Posted 31 May 2017 My Price 10.00

Sales Mix and Break-Even Sales

Sales Mix and Break-Even Sales

Data related to the expected sales of snowboards and skis for Winter Sports Inc. for the current year, which is typical of recent years, are as follows:

Products Unit Selling Price Unit Variable Cost Sales Mix
Snowboards $250   $170   30%  
Skis 400   190   70%  

The estimated fixed costs for the current year are $610,470.

Instructions:

1. Determine the estimated units of sales of the overall (total) product necessary to reach the break-even point for the current year. units

2. Based on the break-even sales in units in part 1, determine the unit sales of both snowboards and skis for the current year.

snowboards: units
skis: units

3. Assume that the sales mix was 70% snowboards and 30% skis. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units

Why is the break-even point in part (3) so different from that in part 1?

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

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Maurice Tutor
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Status NEW Posted 31 May 2017 08:05 PM My Price 10.00

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