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earn a pretax profit of $500,000? 2-31 Multiproduct breakeven analysis Florida Favorites Company produces toy alligators and toy (L03) dolphins. Fixed costs are $1.29 million
earn a pretax profit of $500,000? 2-31 Multiproduct breakeven analysis Florida Favorites Company produces toy alligators and toy (L03) dolphins. Fixed costs are $1.29 million per year. Sales revenue and variable costs per unit are as follows: Sales price Variable costs. ALLIGATORS DOLPHINS $20 $25 8 10 Required (a) Suppose the company currently sells 140,000 alligators per year and 60,000 dolphins per year. Assuming the sales mix stays constant, how many alligators and dolphins must the company sell to break even per year? (b) Suppose the company currently sells 60,000 alligators per year and 140,000 dolphins per year. Assuming the sales mix stays constant, how many alligators and dolphins must the company sell to break even per year? (C) Explain why the total number of toys needed to break even in part (a) is the same as or dif- ferent than the number in part (b)
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