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 $230 $160 20%
Skis 380 180 80%
The estimated fixed costs for the current year are $501,120.
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 80% snowboards and 20% skis. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
units