Break-Even with Multiple Products

Wylie’s Watering Hole sells fruit smoothies. Last year, Wylie sold a total of 24,000 fruit smoothies. Pineapple smoothies outsold Coconut smoothies 2 to 1. Sales of Mango smoothies were the same as sales of pineapple. Fixed costs for the company are $18,189 and additional information follows:

Product	Unit Sales Prices	Unit Variable Cost
Pineapple	$2.50	$0.80
Coconut	$3.75	$1.35
Mango	$3.20	$1.40

a. Calculate the sales mix percentage of all three products (based upon the number of smoothies).

	Pineapple	Coconut	Mango
Sales mix (%)	Answer	Answer	Answer

b. Calculate the weighted average contribution margin for all three types of drinks.

	Pineapple	Coconut	Mango	Total
Wtd. avg. CM	Answer	Answer	Answer	Answer

c. Calculate the break-even volume in number of total smoothies.

Answer

d. Calculate the break-even point in revenue.

Round answer to the nearest dollar.

$Answer

Answer rating: 100% (QA)

Wylies Watering Hole BreakEven Analysis a Sales Mix Percentage Step 1 Calculate sales units for each ... View the full answer