Question
Breakeven analysis; multiproduct CVP analysis EmerilWare, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $10 and are sold
Breakeven analysis; multiproduct CVP analysis EmerilWare, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $10 and are sold for $20. Glass pitchers cost $24 and are sold for $45. All other costs are fixed at $982,800 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year.
Please assist me with the following:
PART A: How many pitchers of each type must be sold to break even in the coming year?
PART B: Kitchenware, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $8. What would be the new breakeven point if managers switched to the new supplier?
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