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B. Multiple Product CVP Analysis: Hawaiian fruit pizza was a great success and Fairfield Pizza has decided to add a second pizza line, Aloha seafood
B. Multiple Product CVP Analysis: Hawaiian fruit pizza was a great success and Fairfield Pizza has decided to add a second pizza line, Aloha seafood pizza, in addition to Hawaiian fruit pizza. Its fixed costs will be increased to $27,000 for month. Aloha seafood pizza is expect to sell at $35 each and its variable cost per pizza is $20. Fairfield pizza expects to sell 60% for Hawaiian fruit pizza and 40% for Aloha seafood pizza. - (1) What is unit contribution margin for Hawaiian fruit pizza and Aloha seafood pizza? - (2) What is the new breakeven in units and in sales dollar of each pizza? - (3) How many pizzas of each type must be sold to earn after tax profit of $21,600 when tax rate is 40%
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