Question: Starbucks analyzes CVP for coffee (fixed costs $1,000,000, variable $2/unit, selling $5/unit) and pastries (fixed $500,000, variable $1.5/unit, selling $4/unit). Requirements: Calculate the break-even point

  1. Starbucks analyzes CVP for coffee (fixed costs $1,000,000, variable $2/unit, selling $5/unit) and pastries (fixed $500,000, variable $1.5/unit, selling $4/unit).
    • Requirements:
      • Calculate the break-even point in units for each product.
      • Determine the combined break-even point.
      • Prepare a profit-volume chart.
      • Analyze the impact of changes in sales mix on the break-even point.

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