Data related to the expected sales of kayaks and canoes are as follows:
Products Unit Selling Price Unit Variable Cost Sales Mix
Kayaks $200 $140 30%
Canoes 530 250 70%
The estimated fixed costs for the current year are $808,920.
Instructions:
1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
[ ] units
2. Based on the break-even sales (units) in part (1), determine the unit sales of both Kayaks and Canoes for the current year.
Kayaks [ ] x units
Canoes [ ] x units
3. Assume that the sales mix was 70% Kayaks and 30% Canoes. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
[ ] units
4. Based upon the break-even sales (units) in part (3), determine the unit sales of Kayaks and Canoes for the current year.
