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Case Study: Assume instead of one product (the Ripped Pig sandwich), Cat & Joe's Pig Rig served three products: the Ripped Pig sandwich, which sold for $12 and had variable costs of 40% of sales price; the Pork Taco, which sold for $9 and had variable costs of 35% of sales price, and the Mac and Cheese Pulled Pork, which sold for $12 and had variable costs of 50% of sales price.
Question: Assuming a constant sales mix (i.e., 60% customers buy Ripped Pig sandwich, 20% customers buy Pork Taco, and 20% customers buy Mac and Cheese Pulled pork), if Cat and Joe wish to break even, how many units of each item must be sold per day?
Financial Statement Analysis and Preparation
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