3. Sales mix and CVP Analysis: Goalies Ball, Inc. produces and sells three different types...
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3. Sales mix and CVP Analysis: Goalies Ball, Inc. produces and sells three different types of soccer balls: basic, deluxe, and pro. Monthly information regarding the three types of balls are shown below:
Basic
Deluxe
Pro
Sales volume (Units)
5,500
4,000
500
Price per unit
$20.00
$35.00
$60.00
VC per unit
$8.00
$19.00
$32.00
Total Fixed Costs (FC): $108,500
Determine the sales mix percentage (%) for the three products.
Determine the contribution margin (CM) per unit for each of the three products.
Calculate the weighted average contribution margin (WACM) per unit (round your final answer to two decimal places).
Calculate the total number of units that Goalies Balls must sell to break-even. Round up to the nearest whole unit.
Based on sales mix, calculate the number of units of each type of ball that would be sold at the firms break-even point.
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