Your friend Vinny would like to expand his successful Sanibel Island milkshake business to Captiva Island. He needs your help to prepare a breakeven analysis. Data provided to you are:

Price for a small shake is $7, large $10; variable costs: small $2,17, large $2.80; fixed costs for a month: $16,840; assume 40% small and 60% large sale mix; average 125,000 people visit the island monthly and 20% visitors buy shakes during their visit.

Required:

Show your calculations to determine the monthly break-even volume for large size and small size.

	S	L
Price	$7	$10
VC	$2.17	$2.80
FC	$16,840