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 $2,040. Other information is as follows:
|
Selling Price per Unit |
Variable Costs per Unit |
|
|
Hamburgers |
$0.99 |
$0.27 |
|
Drinks |
$1 |
$0 |
|
Fries |
$1 |
$0 |