Can you help Wanda answer the following questions:

1. What effect will this price reduction have on Salty Pawz's break-even point? Assume that the product sales mix remains unchanged. (Tip: Remember that because Bison Bites are included in the Party Pooch, the price change on Bison Bites would also affect the sales price of the Party Pooch.And, the break-even pointshould consider the quantity sold to cover any fixed and variable costs).
2. If Wanda reduces the price on the Bison Bites to $1.50, she believes it will cause customers buying Chicken Cuties to switch to the Bison Bites. The revised product mix is provided in the table below. What is the effect on Wanda's break-even point if she reduces the bison product price and customers buy more Bison Bites and fewer Chicken Cuties? (Tip: Remember that because Bison Bites are included in the Party Pooch, the price change on Bison Bites would also affect the sales price of the Party Pooch.)
3. In addition to the numbers, provide Wanda with a written explanation of the changes to her break-even point under both of the scenarios presented.

Products/Services

% of Sales

Party Pooch

45%

Chicken Cuties

13%

Bison Bites

10%

Lamb Lovies

32%

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The conect information in the bottom, It can Help answer question..

Scenario

Wanda has analyzed her sales figures and decided that she is charging too much for Bison Bites, because they only represent 5 percent of her total income. She has a good profit margin on them, so she believes she can reduce the price by $0.25 per biscuit and still make the product profitable.

She comes to you with the proposal above, along with a few related questions. She has provided you with income and expense information to help you figure this out what she should do.

Use this link below for additional insights on how to do this assignment.

https://courses.lumenlearning.com/wm-introductiontobusiness/chapter/reading-finding-the-break-even-point/()

Note: A Income Statement has been provided for you to use in doing this assignment (note the costs and sales data includemonthly figures):

What effect will a $0.25 price reduction in Bison Bites have on Salty Pawz's break-even point? Assume that the product sales mix remains unchanged.

Income Statement

Based on 14,000 units sold per month

Current Price Reduced Price Current% of Total Unit Sales

Income:

Party Pooch $20 40%

Chicken Cuties $15 20%

Bison Bites $21 5%

Lamb Lovies $24 35%

Total Income:

Cost of goods sold:

Party Pooch $10.40

Chicken Cuties $7.80

Bison Bites $10.80

Lamb Lovies $12.60

Total cost of sales

Gross Profit

Operating Expense:

Rent $2500

Electricity $480

Telephone $100

Water/Sewer $200

Internet $80

Website/Online Marketing $860

Salaries $7000

Owner's Draw $15000

Office Supplies $50

Loan Payment $4250

Insurance $360

Other $5000

Total Expense

Net Income

Before Taxes $ $