Reference no: EM132798061
Question - A la Soup Company prepared the following budget information for the coming year:
Chilli Veg. Soup Beef Soup Total
Sales $85,714 $1,000,000 $177,777 $1,263,491
Variable exp. 25,714 800,000 97,777 923,491
Contrib. mar. $60,000 $200,000 $80,000 340,000
Fixed exp. 255,000
Net income $85,000
The budget assumes the sale of 20,000 units of Chilli, 100,000 units of Vegetable Soup, and 80,000 units of Beef Soup.
Required -
a. What is the company's breakeven point given the sales mix above? Round up your answers to the nearest whole number.
b. If the budgeted sales mix is maintained, what is the total contribution margin and net income if 300,000 units are sold?
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