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equipment and personnel to produce nachos will increase monthly fixed costs by $ 8 , 8 0 8 Initial sales of nachos should total 5

equipment and personnel to produce nachos will increase monthly fixed costs by $8,808 Initial sales of nachos should total 5,000 units. Most of the nacho sales are anticipated to come from current hot dog purchasers, therefore, monthly sales of hot dogs are expected to decline to $20,000 After the first year of nacho sales, the company president believes that hot dog sales will increase to $33,750 a month and nacho sales will increase to 7,500 units a month
Required: 
a. Determine the monthly breakeven sales in dollars before adding nachos.
b. Determine the monthly breakeven sales during the first year of nachos sales, assuming a constant
sales mix of 1 hotdog and 2 units of nachos.

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a To determine the monthly breakeven sales in dollars before adding nachos we need to consider the current sales of hot dogs ... blur-text-image

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