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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 | |
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| 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):
- Determine the sales mix percentage (%) for the four products.
- Determine the contribution margin (CM) per unit for each of the four products.
- Calculate the weighted average contribution margin (WACM) per unit (round your final answer to two decimal places).
- Calculate the total number of units that Goalies Balls must sell to break-even. Round up to the nearest whole unit.
- 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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