Question
The Mugger sells three types of Marvel mugs, Captain America, Spiderman, and Superman. The following information is available: Captain America Spiderman Superman Total Sales Volume
The Mugger sells three types of Marvel mugs, Captain America, Spiderman, and Superman. The following information is available:
|
| Captain America | Spiderman | Superman | Total |
| Sales Volume in units | 150,000 | 50,000 | 100,000 | 300,000 |
| Selling Price | $25 | $18 | $15 |
|
| Variable cost per unit | 20 | 8 | 7 |
|
| Total fixed costs |
|
|
| $300,000 |
REQUIRED (show all supporting calculations):
- What is the breakeven point for The Mugger in units and dollars in total and for each mug?
- Assuming the same total sales volume of 300,000 mugs, would you recommend promoting the change in product mix to 1 to 3 to 2 of Captain America mugs, Spiderman mugs, and Superman mugs? Why? Recalculate the breakeven point in units and dollars in total and for each mug for this sales mix to support your analysis.
- An EXECUTIVE SUMMARY IS REQUIRED.
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Fraud examination
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
4th edition
538470844, 978-0538470841
