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Question - Augusta Industries 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:
Product Unit Sales Price Unit Variable Cost
Golf balls $6.00 $3.00
Tennis balls 4.00 1.50
Required -
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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