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Problem - Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $620,000, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows:
Products
Unit Selling Price
Unit Variable Cost
Bats
$ 90
$50
Gloves
105
65
Required -
a. Compute the break-even sales (units) for the overall enterprise product, E.
b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?
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