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Break-even

Data related to the expected sales of Sports, Inc.

Product Unit Selling Price Variable Cost Sales Mix
Golf balls $24.00 $15.50 36%
Tennis balls $6.50 $3.00 24%
Baseballs $8.00 $6.50 40%

The estimated fixed costs for the current year are $279,000

a Determine the sales mix contribution margin

b Determine the estimated units of sales of the overall product mix necessary to reach the break-even point

c Based on the break-even sales (units), determine the unit sales of;
golf balls _____________
tennis balls____________
basebals______________

Solution Preview

See attached file where formatting is proper

a Determine the sales mix contribution margin

Product Unit Selling Price (SP) Variable Cost (VC) Contribution = SP-VC Sales Mix Contribution x Sales Mix %
Golf balls $24.00 $15.50 $8.50 36% $3.06 =$3.06*36%
Tennis ...

Solution Summary

Carries out break-even analysis.

$2.19