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:
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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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