1. Determine the estimated units of sales of the overall product necessary to reach thebreak-even pointfor the current year.
2. Based on the break-even sales (units) in part (1), determine the unit sales of both the 12" pizza and 16" pizza for the current year. If required, round to the nearest whole unit.
| 12" pizza: |
units |
| 16" pizza: |
units |
3. Assume that the sales mix was 40% 12" pizza and 60% 16" pizza. Compute the break-even point.
Compare the break-even point with that in part (1). Why is it so different?
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