Reference no: EM133067343
Question - Hestia, Inc, makes 3 different-sized natural re-usable wooden straws. These straws are sold to restaurants and supermarkets and provided with take-out orders. The three sizes are Tea Straw, Soup Straw, and Tall Drink Straw. Straws are sold in packs. 100 straws to a pack.
A summary of their FY 2020 financial results are below
FY 2020 Tea Straw Soup Stew Tall Drink Straw
Unit Sales in packs (packs are made up of 100 spoons) 200,000 150,000 100,000
Sales Price / pack $8.50 $18.00 $25.00
Variable Cost / pack $3.40 $7.20 $10.00
Fixed Cost / pack $8.60 $8.60 $8.60
Required -
A) What was the breakeven in sales $ in FY 2020?
B) What was the breakeven in sales units (number of packs) in FY 2020?
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