compute the sales revenue that must be earned for ironjay to break even.

multiple products, break-even analysiss, operating leverage, segmented income statements ironjay, inc., produces two types of weight-training equipment: the jay-flex (a weight machine that allows the user to perform a number of different exercises) and a set of free weights. ironjay sells the jay-flex to sporting goods stores for $200. the free weights sell for $75 per set. the projected income statement for the coming year follows: sales less: variable expenses contribution margin less: fixed expenses s600,000 390,000 $210,000 157,500 $ 52,500 operating income the owner of ironjay estimates that 40 percent of the sales revenues will be pro- duced by sales of the jay-flex, with the remaining 60 percent by free weights. the jay- flex is also responsible for 40 percent of the variable expenses. of the fixed expenses, one-third are common to both products, and one-half are directly traceable to the jay- flex line. required: 1. compute the sales revenue that must be earned for ironjay to break even. 2. compute the number of jay-flex machines and free weight sets that must be sold for ironjay to break even.

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