Question
Clean Skin Company sells bottles of three face-wash products: Daily Wash, Mud Mask, and FaceCleanser. The company has annual fixed costs of $300 000. Last
Clean Skin Company sells bottles of three face-wash products: Daily Wash, Mud Mask, and FaceCleanser.
The company has annual fixed costs of $300 000. Last year, the company sold 7 500 bottles of its face-wash products in the ratio of 2:1:2.
Clean Skins accounting department has compiled the following data related to the three face-wash products:
Selling price per unit of Daily Wash is $ 20; Mud Mask is $ 25 and Face Cleanser is $ 22
Variable cost per unit of Daily Wash is $ 12; Mud Mask is $ 16, and Face Cleanser is $ 12.
Calculate the number of bottles of Daily Wash, Mud Mask, and Face Cleanser that must be sold to break even. (
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