Determine the estimated units of sale of the overall product

Reference no: EM131973954

Problem

Sales Mix and Break-Even Sales

Data related to the expected sales of snowboards and skis for Winter Sports Inc. for the current year, which is typical of recent years, are as follows:

Products	Unit Selling Price	Unit Variable Cost	Sales Mix
Snowboards	$180	$120	40%
Skis	450	210	60%

The estimated fixed costs for the current year are $221,760.

Required:

1. Determine the estimated units of sales of the overall (total) product necessary to reach the break-even point for the current year.

2. Based on the break-even sales in units in part 1, determine the unit sales of both snowboards and skis for the current year.

3. Assume that the sales mix was 60% snowboards and 40% skis. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.

Reference no: EM131973954

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