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3. Sales mix and CVP Analysis : The Yogurt Yard, Inc. produces and sells four different sizes of containers of frozen yogurt: Mini, small, medium,

3. Sales mix and CVP Analysis: The Yogurt Yard, Inc. produces and sells four different sizes of containers of frozen yogurt: Mini, small, medium, and large. Monthly information regarding the four flavors are shown below:

Mini

Small

Medium

Large

Sales volume (containers)

7,500

18,500

16,000

8,000

Price per unit

$1.75

$2.50

$3.10

$3.50

VC per unit

$0.80

$0.95

$1.15

$1.25

Total Fixed Costs (FC) per month for the entire firm: $56,180

Answer each of the following questions (you must show all of your work):

  1. Determine the sales mix percentage (%) for the four products.
  2. Determine the contribution margin (CM) per unit for each of the four products.
  3. Calculate the weighted average contribution margin (WACM) per unit (round your final answer to two decimal places).
  4. Calculate the total number of units that Goalies Balls must sell to break-even. Round up to the nearest whole unit.
  5. Based on sales mix, calculate the number of units of each type of ball that would be sold at the firms break-even point.

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