1, Why are breakeven sales dollars different when considering the weighted average contribution margin for the sales mix than when the average contribution margin (without considering the sales mix) is used? 

2. What costs are not captured in the calculation? Hint: see Table I and Operations and Internal Controls above.

Table IV: Cost of goods sold and gross profit analysis by semester
	Fall 2009	Spring 2010	Fall 2010	Spring 2011	Fall 2011	Spring 2012	Fall 2012
Net Sales	$3,136.48	$3,250.97	$3,292.65	$2,122.63	$2,582.67	$2,094.95	$2,099.73
Cost of sales
Beg. inventory	106.09	423.07	142.36	85.80	425.68	579.64	398.77
Add: purchases	2,191.27	1,479.72	1,648.76	2,136.31	1,524.15	1,104.73	1,264.48
Available for sale	2,297.36	1,902.79	1,791.12	2,222.11	1,949.83	1,684.37	1,663.25
Less: ending inventory	423.07	142.36	85.80	425.68	579.64	398.77	387.85
Cost of goods sold	$1,874.29	$1,760.43	$1,705.32	$1,796.43	$1,370.19	$1,285.60	$1,275.40
Gross profit	$1,262.19	$1,490.54	$1587.33	$326.20	$1212.48	$809.35	$824.33

 

Table I Product categories, sales mix, and gross profit percentages Average selling price Percent of Average gross profit percent Category total sales Coffee and tea $1.24 $1.50 17 57 Bottled and canned beverages Snacks and candy Other 48 55 $1.00 $1.25 29 38 29 Total 100.0 Note: The gross profit percentages do not factor in product expiration or spoilage, incidental supplies, unrecorded sales, or theft