Nick has been selling the four products for a couple of years. Hes not always organized, but Nick is observant. He knows which product flies off the shelves (water bottles) and which ones are slower movers (mugs).

Item Selling Price % of Sales

Key Chains $3.00 25%

Mugs $5.00 10%

Bags $6.00 15%

Water Bottle $2.50 50%

Ignoring purchase discounts, the costs Nick has paid historically for these items cover a range of values depending on timing and quantities purchased:

Date Key Chains Mugs Bags Water Bottles

May 1 100@ $1 100 @ $2 100 @ $2.50 100 @ $1.50

July 1 300 @ $0.50 300 @ $3 300 @ $2 300 @ $1

Sept 1 100 @ $1 200 @ $4 200 @ $1.50 200 @ $0.50

Total Units 500 units 600 units 600 units 600 units

If MM sells all four products, and fixed costs are $5,375 how many units of each product does Monahan Media have to sell, just to break-even? Hint: take the composite breakeven number and multiply it by the sales mix percentages to compute the breakeven number of units for each product.