Help!!! Breakeven Point for Multiple Products Hamburgers and More, Inc., sells h

Question

Help!!! Breakeven Point for Multiple Products Hamburgers and More, Inc., sells hamburgers, drinks, and fries. The sales mix is 1:3:2 (i.e., for every one hamburger sold, three drinks and two fries are sold). Using the contribution margin approach, find the breakeven point in units for each product. The company's fixed costs are $1,020. Other information follows. Round your intermediate and per unit computations to the nearest cent. Selling Price per Unit Variable Costs per Unit Hamburgers $0.99 $0.27 Drinks 0.99 0.09 Fries 0.99 0.15

Explanation / Answer

Particulars Selling Price VC Contribution Margin Weight Weighted Contribution Hamburgers 0.99 0.27 0.72 0.166667 1/6 0.12 0.72*1/6 Dinks 0.99 0.09 0.9 0.5 3/6 0.45 0.9*3/6 Fries 0.99 0.15 0.84 0.333333 2/6 0.28 0.84*2/6 Weighted Contribution 0.85 Fixed Costs 1020 Break Even Point (1020/0.85) 1200 Product Calculation Break Even Point Hamburgers 1200*1/6 200 Dinks 1200*3/6 600 Fries 1200*2/6 400

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