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f) After completing Exercise 6, what is the Breakeven in Total Units? See circle. Mark Wilson is considering renting a vending booth at a local
f) After completing Exercise 6, what is the Breakeven in Total Units? See circle.
Mark Wilson is considering renting a vending booth at a local mall for the holiday season. Mark intends to sell 3 products: candy, nuts and cookies. The Fixed Cost to rent the booth for the entire season is $27,900. Mark also anticipates the products to sell in a ratio of 5 candy, 3 nuts and 2 cookies (5:3:2), known as the sales mix. Calculate the total number of products that Mark needs to sell to break even.
Sales Mix: Most company's sell more than one product or service. You must use the company's Sales Mix breakdown to determine the number of units to reach breakeven EXERCISE 6: Mark Wilson is considering renting a vending booth at a local mall for the holiday season. Mark intends to sell 3 products: candy, nuts and cookies. The Fixed Cost to rent the booth for the entire season is $27,900. Mark also anticipates the products to sell in a ratio of 5 candy, 3 nuts and 2 cookies (5:3:2), known as the sales mix. Calculate the total number of products that Mark needs to sell to break even Step 1 of 3: Calculate a weighted-average unit contribution margin Cand $2.50 Nuts Cookies $3.00 Total $3.00 Sale price per unit Less: Variable cost per unit Contribution margin per unit Sales mix in units (ratio) Contribution Margin Weighted Avg CM per Unit ($1.00) $1.00) ($2.00) Step 2 of 3: Utilize the weighted-average contribution margin to calculate the Breakeven point in units Fixed CostsWeighted Avg UCM- Breakeven in UnitsStep by Step Solution
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