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Sales mix and break-even sales Data related to the expected sales of two types of frozen pizzas for Norfolk Frozen Foods Inc. for the
Sales mix and break-even sales 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 Unit Selling Price Unit Variable Cost Sales Mix $12 $3 30% 16" Pizza 15 4 70% The estimated fixed costs for the current year are $46,800. Required: 1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break-even point for the current year. units 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. 12" pizza 16" pizza units units 3. Assume that the sales mix was 50% 12" pizza and 50% 16" pizza. Compute the break-even point of the overall company product, M. Why is it so different? units The break-even point is higher in this scenario than in part (1) because the sales mix is t of product. toward the product with the < 12 F1220 16" Pizza 15 The estimated fixed costs for the current year are $46,800. Required: 70% 1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break-even point for units 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 c 12" pizza 16" pizza units units 3. Assume that the sales mix was 50% 12" pizza and 50% 16" pizza. Compute the break-even point of the overall company different? units The break-even point is in this scenario than in part (1) because the sales mix is ( higher higher lower the same 70% company product, M, necessary to reach the break-even point for the current year. termine the unit sales of both the 12" pizza and 16" pizza for the current year. 50% 16" pizza. Compute the break-even point of the overall company product, M. Why is it so s scenario than in part (1) because the sales mix is not weighted weighted less weighted more toward the product with the 70% The estimated fixed costs for the current year are $46,800. Required: 1. Determine the estimated units of sales of the overall company product, M, necessary units 2. Based on the break-even sales (units) in part (1), determine the unit sales of both th 12" pizza 16" pizza units units 3. Assume that the sales mix was 50% 12" pizza and 50% 16" pizza. Compute the break different? units The break-even point is higher in this scenario than in part (1) because the of product. contribution margin per unit sales variable costs
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