Mr. Puffins Muffins reported the following financial summary by product for the year 20X1.
- How much revenue needs to be generated for the entire company to break even?
- For each flavor, how much revenue needs to be generated to break even?
- For each flavor, how many muffins need to be sold to breakeven?
- Mr. Puffin has the capacity to bake 1,000 more muffins. Which flavor(s) do you recommend be baked to maximize NOI?
20x1 Segmented Income Statement Mr. Puffin's Chocolate Muffins Chip Blueberry 1400 300 400 98,184 49,705 30,178 Cinnamon Coffee Cake 500 16,200 Orange Cranberry 200 2,101 Store Sq Footage # of Muffins Sold $405,936.50 $198,820.00 $120,712.00 $76,950.00 $9,454.50 210.10 315.15 9,818.40 14,727.60 24,546.00 29,455.20 61,731.67 81,820.00 29,455.20 $251,554.07 $154,382.43 4,970.50 7,455.75 12,426.25 14,911.50 18,887.90 41,420.83 14,911.50 $114,984.23 $83,835.77 3,017.80 4,526.70 7,544.50 9,053.40 22,331.72 25,148.33 9,053.40 $80,675.85 $40,036.15 1,620.00 2,430.00 4,050.00 4,860.00 18,306.00 13,500.00 4,860.00 $49,626.00 $27,324.00 525.25 630.30 2,206.05 1,750.83 630.30 $6,267.98 $3,186.52 Revenue Variable Costs: Flour Sugar Eggs Milk Flavorings Labor Sales Commissions Total Variable Costs Contribution Margin Traceable Fix Costs: Oven Depreciation Maintenance Total Trace Fix Costs Segment Margin Common Fix Costs: Supervisor Salary Rent Accounting & Admin Advertising Expenses Utilities Total Com Fix Costs NOI 20,000.00 12,000.00 5,000.0 2,000.00 5,000.00 3,000.00 4,500.00 5,000.00 2,500.00 $7,500.00 ($4,313.48) $32,000.00 $122,382.43 $7,000.00 $76,835.77 $8,000.00 $32,036.15 $9,500.00 $17,824.00 15,000.00 50,000.00 20,000.00 5,000.00 10,000.00 $100,000.00 $22,382.43 7,593.65 10,714.29 10,124.87 2,531.22 2,142.86 $33,106.88 $43,728.89 4,610.43 14,285.71 6,147.23 1,536.81 2,857.14 $29,437.32 $2,598.82 2,474.95 17,857.14 3,299.93 824.98 3,571.43 $28,028.42 ($10,204.42) 320.98 7,142.86 427.97 106.99 1,428.57 $9,427.37 ($13,740.86) 20x1 Segmented Income Statement Mr. Puffin's Chocolate Muffins Chip Blueberry 1400 300 400 98,184 49,705 30,178 Cinnamon Coffee Cake 500 16,200 Orange Cranberry 200 2,101 Store Sq Footage # of Muffins Sold $405,936.50 $198,820.00 $120,712.00 $76,950.00 $9,454.50 210.10 315.15 9,818.40 14,727.60 24,546.00 29,455.20 61,731.67 81,820.00 29,455.20 $251,554.07 $154,382.43 4,970.50 7,455.75 12,426.25 14,911.50 18,887.90 41,420.83 14,911.50 $114,984.23 $83,835.77 3,017.80 4,526.70 7,544.50 9,053.40 22,331.72 25,148.33 9,053.40 $80,675.85 $40,036.15 1,620.00 2,430.00 4,050.00 4,860.00 18,306.00 13,500.00 4,860.00 $49,626.00 $27,324.00 525.25 630.30 2,206.05 1,750.83 630.30 $6,267.98 $3,186.52 Revenue Variable Costs: Flour Sugar Eggs Milk Flavorings Labor Sales Commissions Total Variable Costs Contribution Margin Traceable Fix Costs: Oven Depreciation Maintenance Total Trace Fix Costs Segment Margin Common Fix Costs: Supervisor Salary Rent Accounting & Admin Advertising Expenses Utilities Total Com Fix Costs NOI 20,000.00 12,000.00 5,000.0 2,000.00 5,000.00 3,000.00 4,500.00 5,000.00 2,500.00 $7,500.00 ($4,313.48) $32,000.00 $122,382.43 $7,000.00 $76,835.77 $8,000.00 $32,036.15 $9,500.00 $17,824.00 15,000.00 50,000.00 20,000.00 5,000.00 10,000.00 $100,000.00 $22,382.43 7,593.65 10,714.29 10,124.87 2,531.22 2,142.86 $33,106.88 $43,728.89 4,610.43 14,285.71 6,147.23 1,536.81 2,857.14 $29,437.32 $2,598.82 2,474.95 17,857.14 3,299.93 824.98 3,571.43 $28,028.42 ($10,204.42) 320.98 7,142.86 427.97 106.99 1,428.57 $9,427.37 ($13,740.86)
