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:

The estimated fixed costs for the current year are $ 46,800.

Instructions
1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break- even point for the current year.
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.
3. Assume that the sales mix was 50% 12'' pizza and 50% 16'' pizza. Compare the break- even point with that in part (1). Why is it sodifferent?

Transcribed Image Text:

Products 12 Pizza 16" Pizza Unit Selling Price $12 15 Unit Variable Cost 53 Sales Mix 3096 70%