Data related to the expected sales of 12'' and 16'' pizzas for Pietro€™s Pizza, Inc. for the current year, which is typical of recent years, are as follows:

The estimated fixed costs for the current year are $328,600.

Instructions
1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.
2. Based on the break-even sales (units) in (1), determine the unit sales of both 12'' and 16'' pizzas for the current year.
3. Assume that the sales mix was 80% 12'' and 20% 16'' pizzas. Compare the break-even point with that in (1). Why is it sodifferent?

Transcribed Image Text:

Products Unit Selling Price Variable Cost Sales Mix 12 Pizza 16" Pizza 8.00 11.00 20% 80% 4.50