How many total bats and balls does company need to produce

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Reference no: EM131977196

Problem

Softball Company produces two types of equipment - bats and balls. The following information is available related to each product:

                                          Bats             Balls
Sales price per unit               $20.00         $5.00
Variable costs per unit          15.00           1.00

Bats account for 75% of total product sales and balls account for the rest. Softball's total fixed costs are $71,250.

Required:

A. How many total bats and balls does the company need to produce and sell in order to break even?

B. How much of the equipment sold in 'question A' must be balls in order to break even?

Reference no: EM131977196

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