In order to answer the questions below, you may make additional assumptions, and add$/$change fixed and variable costs $($please clearly indicate all assumptions made$).$

$1)$ Using the above information, determine the number of milkshakes you will need to sell to break$-$ even. In order to do this, you will need to:

$$ Set a sales price $($please use the competitors$$ sales prices first of $$10$ for Large, and $$7($for small$).$

$$ Please clearly state which costs are fixed and which are variable. $($Hint: keep all costs on a monthly basis throughout your analysis$).$ Clearly indicate what the TOTAL fixed costs are on a monthly basis. Also, please clearly indicate variable cost PER UNIT for both the small and large sizes.

$$ You will also need to vary assumptions about depreciable lives for long$-$term assets.

$$ The Sales mix you will use is that of $60\%$ Large, and $40\%$ small. You are to present the solution based on that sales mix. Therefore, you will need to calculate a weighted average contribution margin $[($$$10-$variable cost per unit for large$)*\mathrm{.}60]+[($$$7-$ variable cost per unit for small$)*\mathrm{.}40]$

$2)$ Finally, make a recommendation as to whether or not you should leave your job to open the milkshake shack?

$$