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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 400 190 70%
The estimated fixed costs for the current year are $610,470.
Instructions:
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. units
Why is the break-even point in part (3) so different from that in part 1?
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