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Assume that the sales mix changes, and rotomolded kayaks now make up 70% of total...

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Accounting

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Assume that the sales mix changes, and rotomolded kayaks now make up 70% of total units sold. Calculate the total number of units that would need to be sold to earn a net income of $2,036,580 and identify how many units of each type of kayak will be sold at this level of income. Required sales units Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line. The company's fixed costs are $836,200. An analysis of the sales mix identifies that rotomolded kayaks make up 80% of the total units soid. Calculate the degree of operating leverage for each product line. (Round answers to 2 decimal places, eg. 52.75.) Assume that Current Designs will have sales of $3,000,000 with two-thirds of the sales dollars in rotomolded kayaks and onethird of the sales dollars in composite kayaks, Assuming $673,000 of fixed costs are allocated to the rotomolded kayaks and $163,200 to the composite kayaks, prepare a CVP income statement for each product line

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