Question
6. A more precise breakeven point can be calculated if the sales mix is factored in rather than the average contribution margin. Using the sales
6. A more precise breakeven point can be calculated if the sales mix is factored in rather than the average contribution margin. Using the sales mix data shown in Table I, compute the breakeven point in sales dollars for the Snack Shop before and after accepting FoodFunds. 7. 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? What costs are not captured in the calculation? Hint: see Table I and Operations and Internal Controls above.
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