Friday, October 10, 2014

Sales mix and break-even analysis Leisure Products, Inc., manufactures and sells two products, golf...

Sales mix and break-even analysis

Leisure Products, Inc., manufactures and sells two products, golf balls and tennis balls. Fixed costs are $100,000, and unit sales are 60,000 sheaths of golf balls and 40,000 cans of tennis balls. The unit sales prices and unit variable costs are as follows:

 

Product

Unit Sales Price

Unit Variable Cost

Golf balls

$6

$3.00

Tennis balls

4

1.50

1. Compute the sales mix percentages.

2. Compute the overall break-even unit sales.

3. Compute the unit sales of golf balls and tennis balls at the break-even point.

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