Products Unit Selling Price Unit Variable Cost Sales Mix $ 12 12" Pizza $ 3 30% 16" Pizza 15 70% The estimated fixed costs for the current year are $46,800. Required: 1. Determine the estimated units of sales of the overall enterprise product, E, necessary to reach the break-even point for the current year. x units 2. Based on the break-even sales (units) in part (1), determine the unit sales of both the 12" pizza and 16" pizza for the current year. 12" pizza units 16" pizza units 3. Assume that the sales mix was 50% 12" pizza and 50% 16" pizza. Compute the break-even point of the overall enterprise product, E. Why is it so different? units
Products Unit Selling Price Unit Variable Cost Sales Mix $ 12 12" Pizza $ 3 30% 16" Pizza 15 70% The estimated fixed costs for the current year are $46,800. Required: 1. Determine the estimated units of sales of the overall enterprise product, E, necessary to reach the break-even point for the current year. x units 2. Based on the break-even sales (units) in part (1), determine the unit sales of both the 12" pizza and 16" pizza for the current year. 12" pizza units 16" pizza units 3. Assume that the sales mix was 50% 12" pizza and 50% 16" pizza. Compute the break-even point of the overall enterprise product, E. Why is it so different? units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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