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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 $270 $180 30% Skis 470 220 70% The estimated fixed costs for the current year are $1,115,040.
Required: 1. Determine the estimated units of sales of the overall (total) product necessary to reach the break-even point for the current year.
units
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.
Snowboards: units
Skis: units
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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