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PROBLEM 2 - CVP Analysis with Sales Mix MeowMeow Cafe sells cheesecake and coffee. MeowMeow Cafe estimates that it sells 5.000 slices of cheesecake, it
PROBLEM 2 - CVP Analysis with Sales Mix MeowMeow Cafe sells cheesecake and coffee. MeowMeow Cafe estimates that it sells 5.000 slices of cheesecake, it also sells 30.000 coffee. The budgeted cost information of MeowMeow Cafe's products for 2019 are as followed: Cheesecake Coffee Selling Price $12.00 $4.00 Variable Expenses per Unit $6.00 $1.00 Fixed Expenses $80.000 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollars and percent of each product of the company as a whole b. Compute the break-even point in dollar sales for the company as a whole and the margin of safety in dollars and percentage c. Compute the DoL and what it means
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