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Question - 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
$250
$170
30%
Skis
490
230
70%
The estimated fixed costs for the current year are $828,120.
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 70% snowboards and 30% skis. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
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