Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost...
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Accounting
Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows:
Product
Selling Price per Unit
Variable Cost per Unit
Snowboards
$340
$170
Skis
$410
$220
Poles
$50
$20
Their sales mix is reflected in the ratio 8:4:1. If annual fixed costs shared by the three products are $215,000, how many units of each product will need to be sold in order for Salvadores to break even?
Break-even per composite unit
------?--------- Snowboard 8
--------?------- Ski 4
----------?------ Poles 1
Number of Units per product
----------?------ Snowboard 8
----------?------ Ski 4
----------?----- Poles 1
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