Beachside Co. Sales Mix Analysis
Sales Mix Analysis
Beachside Co. sells two products, skis and snorkels. Last year, Beachside sold 12,600 units of skis and 23,400 units of snorkels. The related data for each product are as follows:
- Skis:
- Unit Selling Price: $120
- Unit Variable Cost: $80
- Unit Contribution Margin: $40
- Snorkels:
- Unit Selling Price: $80
- Unit Variable Cost: $60
- Unit Contribution Margin: $20
To calculate the sales mix, we need to find the percentage of each product in total units sold last year:
Total Number of Units = 12,600 + 23,400
Total Number of Units = 36,000 units
Percentage of Skis = 12,600 / 36,000 = 35%
Percentage of Snorkels = 23,400 / 36,000 = 65%
What was Beachside Co.'s sales mix last year?
The correct answer is c. 35% skis, 65% snorkels.
What was Beachside Co.'s sales mix last year? The sales mix of Beachside Co. last year was 35% skis and 65% snorkels.