HydroHappy management wants to examine the profitability of its small retail shop near the beach in St. Thomas, Virgin Islands. The shop rents and sells two unique products, boogie boards and skimboards, referred to by the locals as a “Boogie” and a “Skimmy.” Even though the rental operations are profitable, the retail operations may not be covering the related costs. On average, the company sells two Skimmy boards for every one Boogie. For this case, you will prepare a break-even analysis for HydroHappy’s two products by using data for forecasted sales. You will also create a CVP graph to forecast the company’s total sales revenue, fixed costs, and total variable costs in order to determine the profitability of HydroHappy’s retail sales operation.

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