#### (Solved): 1. Sales Mix And Break-Even Sales Dragon Sports Inc. Manufactures And Sells Two Products, Baseball B ...

1.

Sales Mix and Break-Even Sales

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are \$468,000, and the sales mix is 60% bats and 40% gloves. The unit selling price and the unit variable cost for each product are as follows:

 Products Unit Selling Price Unit Variable Cost Bats \$60 \$50 Gloves 150 90

a. Compute the break-even sales (units) for both products combined.
units

b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?

 Baseball bats units Baseball gloves units

2.

Break-Even Sales

Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions of dollars):

 Net sales \$47,063 Cost of goods sold \$18,756 Selling, general and administration 12,999 \$31,755 Income from operations \$15,308* *Before special items

In addition, assume that Anheuser-Busch InBev sold 400 million barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that Anheuser-Busch InBev expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by \$300 million.

When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place.

a. Compute the break-even number of barrels for the current year.
million barrels

b. Compute the anticipated break-even number of barrels for the following year.
million barrels.

3.

a. Yountz Company budgets sales of \$960,000, fixed costs of \$17,300, and variable costs of \$76,800. What is the contribution margin ratio for Yountz Company? (Enter your answer as a whole number.)
%

b. If the contribution margin ratio for Vera Company is 55%, sales were \$583,000, and fixed costs were \$234,070, what was the income from operations?
\$

4.

Break-Even Sales and Sales to Realize Income from Operations

For the current year ending October 31, Yentling Company expects fixed costs of \$694,400, a unit variable cost of \$64, and a unit selling price of \$96.

a. Compute the anticipated break-even sales (units).
units?

b. Compute the sales (units) required to realize income from operations of \$160,000.
units?