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Part I. CVP analysis in a multi - product environment Wilbur and Wilma Wildcat own Wildcat Co . , a local small business that operates

Part I. CVP analysis in a multi-product environment
Wilbur and Wilma Wildcat own Wildcat Co., a local small business that operates various popular food trucks
around town and for hire at special events. Their southwestern fare-themed truck "Sonoran Kitchen" has the
following data for its three product offerings:
The Sonoran Kitchen team prepares all product offerings and transports all ingredients in the same food truck,
such that decisions about their food offerings do not affect current fixed costs per month of $1,250.
Help Wilbur and Wilma calculate the monthly break-even point for Sonoran Kitchen in total sales dollars
and sale dollars of each product offering, assuming they maintain the planned sales mix. Show your
calculations.
How could you express the break-even point in total units using the formula method? [Hint: Refer to
the formula method as discussed in our textbook and lectures. For a multi-product company, noting
you will need to calculate a weighted-average contribution margin per unit.]
Using your answer to Question 2 for total units required to breakeven, what would be the quickest way
to then calculate the quantity of each product offering at the break-even point?
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