Question

# Sales Mix and Break-Even Sales Dragon Sports Inc, manufactures and sells two products, baseball bats and...

Sales Mix and Break-Even Sales Dragon Sports Inc, manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are \$954,800, and the sales mix is 30% bats and 70% 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 both products combined. 59 units 1 b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point? Baseball bats units Baseball gloves units

Weighted average contribution margin per unit = (80-60*30%)+(200-120*70%) = 62

a) Break even unit = 954800/62 = 15400 Units

b) Baseball bats = 15400*30% = 4620 Units

Baseball gloves = 15400*70% = 10780 Units

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