Question

PopARoo sells two flavours of popocorn - chocolate and caramel. Information on sales for July follows:...

PopARoo sells two flavours of popocorn - chocolate and caramel.

Information on sales for July follows:

Chocolate Caramel Total
Number of bags 9,000 6,000 15,000
Sales $72,000 $60,000 $132,000
Variable costs $27,000 $15,000 $42,000
Fixed costs $6,000 $10,000 $58,000
Fixed Revenues $4,000

Determine the number of units and sales revenue for each product at the breakeven point for PopARoo in the following two hypothesis:

1) The sales mix is constant

2) The sales mix is expected to be: 7 chocolate, 5 Caramel

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