Data related to the expected sales of two types of frozen pizzas for Delicious Frozen Foods Inc.

Question:

Data related to the expected sales of two types of frozen pizzas for Delicious Frozen Foods Inc. for the current year, which is typical of recent years, are as follows:

Unit Selling Price Products 12

The estimated fixed costs for the current year are $26,400.
1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
2. Based on the break-even sales (units) in part (1), determine the unit sales of both the 12'' pizza and 16" pizza for the current year.
3.  Assume that the sales mix was 40% 12'' pizza and 60% 16'' pizza. Compare the break-even point with that in part (1). Why is it so different?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 9780538475006

24th Edition

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

Question Posted: