Question - Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $436,500, and the sales mix is 30% bats and 70% 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.
b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?