Question: sales mix and breakeven sales dragon sports inc manufactures and...
Sales Mix and Break-Even Sales
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $169,100, and the sales mix is 70% bats and 30% gloves. The unit selling price and the unit variable cost for each product are as follows:
|Products||Unit Selling Price||Unit Variable Cost|
a. Compute the break-even sales (units) for
both products combined.
b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?
Break-Even Sales and Sales Mix for a Service Company
Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:
|Flight crew salaries||9,461|
|Variable cost per passenger—business class||55|
|Variable cost per passenger—economy class||45|
|Round-trip ticket price—business class||555|
|Round-trip ticket price—economy class||285|
It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number.
a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 20% business class and 80% economy class seats.
|Total number of seats at break-even||seats|
b. How many business class and economy class seats would be sold at the break-even point?
|Business class seats at break-even||seats|
|Economy class seats at break-even||seats|