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Sales mix, three products exercise Candy offers three donut products, a full dozen, half dozen and the donut pop, with contribution margins of $5.84,$4.49, and
Sales mix, three products exercise Candy offers three donut products, a full dozen, half dozen and the donut pop, with contribution margins of $5.84,$4.49, and $2.27, respectively. A full dozen sells for $8.50, a half dozen sells for $6.00, and a donut pop sells for $3.00. She is estimating sales of 221,400 individual donuts in the coming period, consisting of 14,000 of the full dozen, 6,900 units of the half dozen, and 4,000 of the donut pops. The estimated fixed costs for the period are $92,620. 1A. Determine the weighted-average contribution margin. 1B. Determine the sales mix to break-even. Break-even (BE) Sales Mix donut bundles 1B. Determine the sales mix to break-even. Break-even (BE) Sales Mix donut bundles 2. Using information from \#1 above, determine how many units of each donut product are sold at the break-even point. 4A. What are the total units needed to sell (assuming the same sales mix, and therefore, same WACM) for a target profit of $50,000. Fixed costs are also unchanged at $92,620. 4B. Determine how many units of each donut product are sold to reach target profit (from above). 5. Prepare an income statement to prove target profit of $50,000 3. Prepare an income statement to prove break-even (using information from \#2 above). Candy's Donuts Sales mix - Break even point For the period ending xxxx
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