Data related to the expected sales of two types of frozen pizzas for Cappelletti 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 $55,120.

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 so different?

Transcribed Image Text:

Products Unit Selling Price Unit Variable Cost Sales Mix 12" Pizza $13 $4 20% 16" Pizza 16 5 80%