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?
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Answers
Status NEW
Posted 20 Jul 2017 10:07 AM
My Price 6.00
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Attachments
file 1500546534-Sales Mix and Break-Even Sales.docx preview (172 words )
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