Question

SMALL BUSINESS AccOUNTING: PROJECTING AND EVALUATI Breakeven with More Than One Product 1. Suppose that Red Jett Sweets, on average, sells one beverage for each three cupcakes sold. In this sit ion, an average (typical) sale would be 3 cupcakes × $2.75 plus 1 beverage × $1.35, for a total sale of $9.60. If the variable cost of one cupcake is $1.34, and the variable cost of one beverage is $0.52, how many cupcakes and beverages must be sold to attain breakeven? ow would you calculate breakeven for a restaurant that sells 50 different items, each with a different price 2. How w.onro nt and different variable cost? c Key points Fixed costs plus variable costs equal your total cost. Crease costs remain constant in total, but variable costs increase as output increases and de- Tease if output decreases. Il the less its fixed cost per item becomes. In our

Answer 1

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