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2-44 Sales-Mix Analysis Study Appendix 2A. The Pacific Catering Company specializes in preparing tasty main courses that are frozen and shipped to the finer restaurants
2-44 Sales-Mix Analysis Study Appendix 2A. The Pacific Catering Company specializes in preparing tasty main courses that are frozen and shipped to the finer restaurants in the Los Angeles area, When a diner orders the item, the restaurant heats and serves it. The budget data for 19X6 are Product Chicken Veal Cordon Bleu Marsala Selling price to restaurants $6 $8 Variable expenses 3 4 Contribution margin $3 $4 Number of units 250,000 125,000 The items are prepared in the same kitchens, delivered in the same trucks, and so forth. Therefore, the fixed costs of $1,320,000 are unaffected by the specific products. Required 1. Compute the planned net income for 19X6. 2. Compute the break-even point in units, assuming that the planned sales mix is maintained. 3. Compute the break-even point in units if only veal were sold and if only chicken were sold
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