Question
Break-Even with Multiple Products Wylies Watering Hole sells fruit smoothies. Last year, Wylie sold a total of 24,000 fruit smoothies. Pineapple smoothies outsold Coconut smoothies
Break-Even with Multiple Products
Wylie’s Watering Hole sells fruit smoothies. Last year, Wylie sold a total of 24,000 fruit smoothies. Pineapple smoothies outsold Coconut smoothies 2 to 1. Sales of Mango smoothies were the same as sales of pineapple. Fixed costs for the company are $18,189 and additional information follows:
Product | Unit Sales Prices | Unit Variable Cost |
---|---|---|
Pineapple | $2.50 | $0.80 |
Coconut | $3.75 | $1.35 |
Mango | $3.20 | $1.40 |
a. Calculate the sales mix percentage of all three products (based upon the number of smoothies).
Pineapple | Coconut | Mango | |
---|---|---|---|
Sales mix (%) | Answer | Answer | Answer |
b. Calculate the weighted average contribution margin for all three types of drinks.
Pineapple | Coconut | Mango | Total | |
---|---|---|---|---|
Wtd. avg. CM | Answer | Answer | Answer | Answer |
c. Calculate the break-even volume in number of total smoothies.
Answer
d. Calculate the break-even point in revenue.
Round answer to the nearest dollar.
$Answer
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