CVP Analysis- Multiple Products: Pete's Pizza produces two products, 12-inch pizzas and 16-inch pizzas, with the following characteristics:

The total fixed costs for the company are $700,000.

Required:

a. What is the anticipated level of profits for the expected sales volumes?

b. Assuming that the product mix would be the same at the break-even point. compute the break-even point in terms of each of the products.

c. If the product sales mix were to change to four 12-inch pizzas for each 16-inch pizza, what would be the new break-even volume for each of the products?

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Selling price per unit Variable cost per unit Expected sales (units) 12-Inch Pizza $5 $3 100,000 16-Inch Pizza $6 $2 150,000