Question
Clean Skin Company sells bottles of three face-wash products: Daily Wash, Mud Mask, and Face Cleanser. 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 Face Cleanser. 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 4:2:4. (That is to say, 40% of sales were with Daily Wash, 20% of the sales for of Mud Mask, and the remaining 40% of sales was attributed to Face Cleanser.) Clean Skin's accounting department has compiled the following data related to the three face-wash products: Daily Wash Mud Mask Face Cleanser Price per bottle $12.00 $20.00 $14.00 Variable costs per bottle $2.00 $8.00 $6.00
A.Using the ratio of products sold and their sales and variable costs, the total number of bottles that must be sold for the company to break even is _____
B.Using the ratio of products sold and their sales and variable costs, the total number of bottles by product that must be sold for the company to break even is ________
C. Using the ratio of products sold and their sales and variable costs, how might Clean Skin Comapny reduce its break-even point?
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