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 | 490 | 230 | 70% |
The estimated fixed costs for the current year are $828,120.
Required:
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
