Matsunaga Farms produces strawberries and raspberries. Annual fixed costs are $15,600. The cost driver for variable costs is “litres of fruit produced.” The variable cost is $0.75 per litre of strawberries and $0.95 per litre of raspberries. Strawberries sell for $1.10 per litre, raspberries for $1.45 per litre. Two litres of strawberries are produced for every litre of raspberries.

1. Compute the number of litres of strawberries and the number of litres of raspberries produced and sold at the break-even point.

2. Suppose only strawberries are produced and sold. Compute the break-even point in litres.

3. Suppose only raspberries are produced and sold. Compute the break-even point in litres.