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Sanburn Sporting Goods manufactures athletic and recreational equipment. Their unit sales and cost data for the...


Sanburn Sporting Goods manufactures athletic and recreational equipment. Their unit sales and cost data for the year 2020 is
Sanburn Sporting Goods manufactures athletic and recreational equipment. Their unit sales and cost data for the year 2020 is shown here: Pool cues Tennis rackets $ 50 40 Baseball bats $ 45 42 Lacrosse sticks $ 65 $ 25 Sales price / unit Variable costs / unit Contribution margin/ unit Sales mix $ 10 $ 3 $ 10 $25 40% 30% 25% 5% Sanburn expects their total fixed costs to be $125,425 in 2020. REQUIRED: 1. Calculate Sanburn's break-even point in units for the whole company. 2. Calculate Sanburn's break-even point in units for each of their products. 3. Demonstrate that the sales quantities you found for each product in #2 will actually generate an overall net income of zero for Sanburn.
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Answer #1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet. For detailed answer refer to the supporting sheet.

answer 2 Part 1) 3 Firstly we have to calculate the weighted average contribution margin 4 = weights * contribution margin 5

5 Thus the final answer 6 Products 7 Tennis Racket 8 Baseball 9 Pool Cues o Lacrosse sticks Break even units 5800 4350 3625 7

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