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PR 20-5B Sales mix and break-even sales Obj. 5 Data related to the expected sales of two types of frozen pizzas for Norfolk Frozen Foods

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PR 20-5B Sales mix and break-even sales Obj. 5 Data related to the expected sales of two types of frozen pizzas for Norfolk Frozen Foods Inc for the current year, which is typical of recent years, are as follows: Products 12" Pizza 16" Pizza Unit Selling Price $12 15 Unit Variable Cost $3 4 Sales Mix 30% 7096 The estimated fixed costs for the current year are $46,800. Instructions 1. Determine the estimated units of sales of the overall enterprise product, E, necessary to reach the break-even point for the current year. 2. Based on the break-even sales (units) in part (1), determine the unit sales of both the 12" pizza and 16" pizza for the current year. 3. Assume that the sales mix was 50% 12" pizza and 50% 16" pizza. Compare the break- even point with that in part (1). Why is it so different

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