acct 460903

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