Compute the break-even sales

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Question - Home Run Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $1,016,800, and the sales mix is 30% bats and 70% gloves. The unit selling price and the unit variable cost for each product are as follows:

Products

Unit Selling Price

Unit Variable Cost

Bats

$80

$60

Gloves

$200

$120

a. Compute the break-even sales (units) for the overall product, E. how many units?

b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?

Reference no: EM132995032

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