Wylie’s Watering Hole sells fruit smoothies. Last year, Wylie sold a total of 24,000 fruit smoothies....
Wylie’s Watering Hole sells fruit smoothies. Last year, Wylie sold a total of 24,000 fruit smoothies. Pineapple smoothies outsold Coconut smoothies 2 to 1. Sales of Mango smoothies were the same as sales of pineapple. Fixed costs for the company are $16,168 and additional information follows:
| Product | Unit Sales Prices |
Unit Variable Cost |
|---|---|---|
| Pineapple | $2.60 | $0.90 |
| Coconut | $3.85 | $1.45 |
| Mango | $3.30 | $1.50 |
a. Calculate the sales mix percentage of all three products (based upon the number of smoothies).
| Pineapple | Coconut | Mango | |
|---|---|---|---|
| Sales mix (%) | Answer | Answer | Answer |
b. Calculate the weighted average contribution margin for all three types of drinks.
| Pineapple | Coconut | Mango | Total | |
|---|---|---|---|---|
| Wtd. avg. CM | Answer | Answer | Answer | Answer |
c. Calculate the break-even volume in number of total smoothies.
Answer
d. Calculate the break-even point in revenue.
Round answer to the nearest dollar.
$Answer
Homework Answers
a. Calculate the sales mix percentage of all three products (based upon the number of smoothies).
| Pineapple | Coconut | Mango | |
|---|---|---|---|
| Sales mix (%) | 2/5 = 40% | 20% | 40% |
b. Calculate the weighted average contribution margin for all three types of drinks.
| Pineapple | Coconut | Mango | Total | |
|---|---|---|---|---|
| Wtd. avg. CM | 1.7*40% = 0.68 | 2.4*20% = 0.48 | 1.8*40% = 0.72 | 1.88 |
c. Calculate the break-even volume in number of total smoothies.
16168/1.88 = 8600 Units
d. Calculate the break-even point in revenue.
Round answer to the nearest dollar.
8600*3.13 = 26918
Add Answer to:
Wylie’s Watering Hole sells fruit smoothies. Last year, Wylie
sold a total of 24,000 fruit smoothies....
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