
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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I am having trouble with this I do not know how to get the rest of the units. I have tried to multiply and divide and I cannot figure it out.

Transcribed Image Text:Sales Mix and Break-Even Sales
Data related to the expected sales of two types of frozen pizzas for Norfolk Frozen Foods Inc. for the current year, which is typical of recent years, are as follows:
Unit Selling Price
$ 12
Products
Unit Variable Cost
Sales Mix
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.
4,500 v 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
The break-even point is
in this scenario than in part (1) because the sales mix is
toward the product with the higher
of product.
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