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Problem
Aussie Sporting Company Pty Ltd produces two types of sporting balls: basketballs and footballs. During the year ended 30 June 2015 it sold the balls in the proportion of three basketballs for every two footballs sold. The basketballs are high-quality balls and sell for $120 each and the variable costs per ball are $70. The footballs sell for $100 each and the variable costs per ball are $75. The fixed costs for Aussie Sporting Company are $433,400 per year.
Calculate the break-even point in total units and the number of units of each type of ball that must be sold.
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