What is the sales mix percentage of units sold

Reference no: EM133538218

Cost-Volume-Profit; Additional Issues

Wanting to explore new revenue streams, Chloé decides to start selling gourmet cookies and she starts off this new venture by selling (on average) 750 cookies/month at $1.50 each.

Variable costs per cookie are $0.55.

a) What is the sales mix percentage of units sold?

b) What is the weighted average contribution margin? Calculate 2 columns; one for $, one for %

a. Based on this result, was this a good business decision for Chloé? Why or why not?

c) Assuming the fixed costs determined in 2b stay the same, what is the revised break- even point (units)?

Reference no: EM133538218

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