Management ScienceWonderFood is a multi-product company that makes three types of cereal. Following table shows the sales price, variable cost per unit and units sold of each product: Type 1Type 2Type 3Variable Costper Unit$5$7.50$9Price per Unit$10$13$15Unit Sold200015001300 If the company has fixed costs of $100, 000 per annum, calculate the breakeven distribution of products.

Cost accounting is useful since it can show where a company spends money, how much it generates, and…

Answered: WonderFood is a multi-product company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Management Science

WonderFood is a multi-product company that makes three types of cereal. Following table shows the sales price, variable cost per unit and units sold of each product:

	Type 1	Type 2	Type 3
Variable Cost per Unit	$5	$7.50	$9
Price per Unit	$10	$13	$15
Unit Sold	2000	1500	1300

If the company has fixed costs of $100, 000 per annum, calculate the breakeven distribution of products.

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