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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 multiproduct 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 farethemed 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 $ Help Wilbur and Wilma calculate the monthly breakeven 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 breakeven point in total units using the formula method? Hint: Refer to the formula method as discussed in our textbook and lectures. For a multiproduct company, noting you will need to calculate a weightedaverage contribution margin per unit. Using your answer to Question for total units required to breakeven, what would be the quickest way to then calculate the quantity of each product offering at the breakeven point?
Part I. CVP analysis in a multiproduct 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 farethemed 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 $
Help Wilbur and Wilma calculate the monthly breakeven 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 breakeven point in total units using the formula method? Hint: Refer to
the formula method as discussed in our textbook and lectures. For a multiproduct company, noting
you will need to calculate a weightedaverage contribution margin per unit.
Using your answer to Question for total units required to breakeven, what would be the quickest way
to then calculate the quantity of each product offering at the breakeven point?
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