Answered step by step
Verified Expert Solution
Question
1 Approved Answer
mix in 4 is 30% regular and 70% ultimate. The following table indicates the selling price and variable costs for each option. 5 6 7
mix in 4 is 30% regular and 70% ultimate. The following table indicates the selling price and variable costs for each option. 5 6 7 Selling Price 8 Variable Cost $ $ Regular 17 $ 10 $ Ultimate 21 13 10.00 13.00 Othello Pizza may als pizzas. 9 10 How many units of each of the regular and ultimate options need to be sold each month for the company to break 11 even, assuming the planned sales mix is maintained? 12 Contribution Margin (Regular) $ 17.00 S 13 Contribution Margin (Ultimate) $ 21.00 $ 14 Weighted-Average Contribution Margin = (Contribution Margin per Regular x Sales Mix for Regular) + (Contribution Margin per Ultimate x Sales Mix for Ultimate) 15 16 BEP Fixed Costs + Weighted-Average Contribution Margin 17 18 BEP Regular = Breakeven Point x Sales Mix for Regular 19 20 BEP Ultimate = Breakeven Point x Sales Mix for Ultimate 21 22 23 4 Weighted Average Contribution Margin Example Cheese Pizza Loaded Pizz Weighted Average C Copyright 2020 AEng me Introduction to the Breake Number of Cheese = Pizzas to Break Even= Number of Loaded
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started