Clovis Supply sells two models of saddles to retail outfittersbasic and custom. Basic saddles sell for $1,000

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Clovis Supply sells two models of saddles to retail outfitters—basic and custom. Basic saddles sell for $1,000 each and custom saddles sell for $1,500. The variable cost of a basic saddle is $600 and that of a custom saddle is $750. Annual fixed costs at Clovis are $280,500. The break-even point at the current sales mix is 500 total units.


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How many basic saddles and how many custom saddles are sold at the break-even level? In other words, what is the assumed salesmix?


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Fundamentals of Cost Accounting

ISBN: 978-0077398194

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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