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(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?

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