Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $918,500, and the sales mix is 30% bats and 70% gloves. The unit selling price and the unit variable cost for each product are as follows:ProductsUnit Selling PriceUnit Variable CostBats$70 $50 Gloves180 110 a. Compute the break-even sales (units) for both products combined. unitsb. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point

a. The  break-even sales in units for both products are 15,836 units

b. The no of units of baseball bats, and baseball gloves is 4,750 units  and 3,770 units

a. The computation of the break-even sales (units) is  as follows:

We know that  

Contribution margin = Sales - Variable costs

For Bats = $70 - $50

= $30

For Gloves = $180 - $110

= $70

Now

weighted average Contribution margin is

= ($30 × 30%) + ($70 × 70%)

= $9 + $49

= $58

Now  

Break-even = Fixed cost ÷ Contribution margin

= $918,500 ÷ $58

= 15,836 units

b. The calculation of units of each product is:

Baseball bats = 15,836 units × 30%

= 4,750 units

Baseball gloves = 5,836 units × 70%

= 3,770 units

Therefore we can conclude that a. The  break-even sales in units for both products are 15,836 units

b. The no of units of baseball bats, and baseball gloves is 4,750 units  and 3,770 units

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a. 15,836 units

b. 4,750 units

3,770 units

Explanation:

a. The computation of the break-even sales (units) is shown below:-

Contribution margin=Sales - Variable costs

Contribution margin for Bats = $70 - $50

= $30

Contribution margin for Gloves = $180 - $110

= $70

weighted average Contribution margin = ($30 × 30%) + ($70 × 70%)

= $9 + $49

= $58

Break-even = Fixed cost ÷ Contribution margin

= $918,500 ÷ $58

= 15,836 units

b. The computation of units of each product is shown below:-

Baseball bats = 15,836 units × 30%

= 4,750 units

Baseball gloves = 5,836 units × 70%

= 3,770 units

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