Question
Scenario : Hestia, Inc, makes 3 different-sized natural re-usable wooden straws. These straws are sold to restaurants and supermarkets and provided with take-out orders. The
Scenario: Hestia, Inc, makes 3 different-sized natural re-usable wooden straws. These straws are sold to restaurants and supermarkets and provided with take-out orders. The three sizes are Tea Straw, Soup Straw, and Tall Drink Straw. Straws are sold in packs. 100 straws to a pack.
A summary of their FY 2020 financial results are below
| FY 2020 | Tea Straw | Soup Stew | Tall Drink Straw |
Unit Sales in packs (packs are made up of 100 spoons) | 200,000 | 150,000 | 100,000 |
Sales Price / pack | $8.50 | $18.00 | $25.00 |
Variable Cost / pack | $3.40 | $7.20 | $10.00 |
Fixed Cost / pack | $8.60 | $8.60 | $8.60 |
A) What was the breakeven in sales $ in FY 2020?
B) What was the breakeven in sales units (number of packs) in FY 2020?
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Financial Accounting Theory
Authors: William R. Scott, Patricia O'Brien
8th Edition
013416668X, 978-0134166681
