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 12ʹʹ pizza and 16ʹʹ pizza for the current year.
3. Assume that the sales mix was 50% 12ʹʹ pizza and 50% 16ʹʹ pizza. Compare the break even point with that in part (1). Why is it so different?

Transcribed Image Text:

Products 12" Pizza 16" Pizza Unit Selling Price $12 15 Unit Variable Cost 53 4 Sales Mix 30% 70%