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Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $276,000, and the sales mix is 80% bats and 20% gloves. The unit selling price and the unit variable cost for each product are as follows:
products: bats ($70 / unit selling price & $50 / unit variable cost) gloves ($180 / unit selling price & $110 / unit variable cost)
Problem a. Compute the break-even sales (units) for the overall enterprise 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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