Wanting to explore new revenue streams, Chlo decides to start selling gourmet cookies and she starts off
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Question:
Wanting to explore new revenue streams, Chloé decides to start selling gourmet cookies and
she starts off this new venture by selling (on average) 750 cookies/month at $1.50 each.
Variable costs per cookie are $0.55.
a) What is the sales mix percentage of units sold?
b) What is the weighted average contribution margin? Calculate 2 columns; one for $, one
for %
a. Based on this result, was this a good business decision for Chloé? Why or why
not?
c) Assuming the fixed costs determined in 2b stay the same, what is the revised break-
even point (units)?
Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
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