Greer Golf Supplies is an online store that sells two types of golf balls: practice...
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Greer Golf Supplies is an online store that sells two types of golf balls: practice balls and tournament balls. The golf balls are sold in plastic sleeves containing three golf balls. Practice balls sell for $4 per sleeve; tournament balls sell for $12 per sleeve. Owner Carl Rider purchases the golf balls directly from the manufacturer and pays $1 per sleeve for the practice balls and $4 per sleeve for the tournament balls. Fixed costs total $14,000 per month and include Carls salary, website hosting, and accounting and legal fees. When preparing the sales forecast for the year, Carl assumed he would sell twice as many sleeves of practice balls as tournament balls.
Using the actual sales mix, calculate the breakeven point for the year. Fixed costs were $14,000 per month.
Sales Mix 2.3:1
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