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Unformatted text preview: Sport Leisure Unit selling price $20.0 $35.00 Variable cost per unit $12.0 $24.50 Sixty percent of the unit sales are Sport, and annual fixed expenses are $45,000. Assuming that the sales mix remains constant, the number of units of Sport that the company must sell to break even is: BE units = FC/WACM BE units = $45,000/($8 x 60% + $10.50 x 40%) BE units = 5,000 5,000 x 60% = 3,000 Page 1 of 2 5158897.doc Accounting 2102 Spring 2008 Farmer quiz 3 . . .chapter 6 So . . . 3,000 of the 5,000 units we need to sell to breakeven will be from our sport line Page 2 of 2 5158897.doc...
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- Spring '08