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Requirements: 1) please use calculate the break-even point for a company selling multiple products 2) please show the work and steps. Hints: 1) You should
Requirements: 1) please use calculate the break-even point for a company selling multiple products
2) please show the work and steps.
Hints: 1)You should get a composite CMu of $16.80.
2) You should get the number of Chicken Sweaters to be sold at the break-even point of 18,179.
Henrietta Chicken Sweaters is planning to expand their product offerings. With more and more backyard farms populating urban areas they see a demand for a greater variety of products. Henrietta will offer three products, they will continue producing their popular chicken sweaters and will expand to llama sweaters and ferret sweaters. The company estimates they will sell the following number of units of their products: Type of Sweater Chicken Llama Ferret Sales Units 7,875 2.250 1,125 Fixed costs are estimated to total $436,296 for the year. Sales price and cost data are: Type of Sweater Chicken Llama Ferret Sales Price $13 131 16 Variable Cost per Sweater $7 73 6 Required: (1) Compute the break-even point in total units. (2) Determine how many of each type of sweater will need to be sold at this break-even point. (3) Based on this information, determine their break-even point in sales dollars. (4) Prove your work. Prepare a CM Income Statement at the break-even point
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