A food truck operator had the following information in regards to current sales for the year:
Question:
A food truck operator had the following information in regards to current sales for the year:
Unit sold Price Var Cost
Chicken Sandwiches 10,000.00 4 1.5
Pulled Pork Sandwiches 12,000.00 4.5 1.75
French Fries 15,000.00 2.5 0.75
Soft Drink 17,000.00 2 1
Fixed costs total $15,000.
1. Based on the current product mix, the weighted average contribution margin is _____________.
2. Based on the information in Question 10, the company will have to sell ____________ chicken sandwiches to break even. Assume the sales mix remains the same as the sales mix in Question #1. The other items will also have break even units but I am only asking for chicken sandwiches in this question.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill