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Home Run Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $1,002,000, and the sales mix is 20% bats and 80% gloves.
The unit selling price and the unit variable cost for each product are as follows:
Products Unit Selling Price Unit Variable CostBats $70 $50 Gloves 180 110
Problem a. Compute the break-even sales (units) for the overall product, E.
Problem b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?
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