Question: Data related to the expected sales of kayaks and canoes

Data related to the expected sales of kayaks and canoes for River Sports Inc. for the current year, which is typical of recent years, are as follows:


The estimated fixed costs for the current year are $1,440,000.

Instruction
1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
2. Based on the break-even sales (units) in part (1), determine the unit sales of kayaks and canoes for the current year.
3. Assume that the sales mix was 20% kayaks and 80% canoes. Determine the estimated units of sales of overall product necessary to reach the break-even point for the current year.
4. Based upon the break-even sales (units) in part (3), determine the unit sales of kayaks and canoes for the current year.
5. Why is the overall enterprise break-even point so different in (1) and(3)?
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  • CreatedFebruary 04, 2014
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