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.

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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5PB

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