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Suppose Fairway decides to offer two products: Juice and Soda. Assume Fairway incurs $350,000 of fixed expenses per month and it has the following unit
Suppose Fairway decides to offer two products: Juice and Soda. Assume Fairway incurs $350,000 of fixed expenses per month and it has the following unit prices and variable expenses are: Sale price per unit Variable expense per Juice $70.00 15.00 Soda $140.00 25.00 If Fairway expects to sell seven units in Juice for every four units in Soda, Compute; a)The weighted-average contribution margin per unit. b)The total number of units Fairway must sell to break-even. c)The number of Juice units and the number of Soda units the company must sell to break even
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