Cowgirl Chocolates
1.
2.
Breakeven=Total Fixed Expenses/Weighted Average Selling Price-Weighted Average Variable Expenses
Using Suggested Retail Prices:
Weight Average Selling price= (2.99x50%)+(6.95X16%)+(14.95x12%)+(5.95x10%)+(2.95x7%)+(8.95x1%)+(24.95x1%)+(39.95x1%)+(59.95x1%)+(19.50X1%)
=1.495+1.112+1.794+.595+.2065+.0895+.2495+.3995+.5995+.195
=$6.7355
Weighted Average Variable Expenses=
(1.16x50%)+(2.35X16%)+(4.78x12%)+(2.5x10%)+(.97x7%)+(2.95x1%)+(9.05x1%)+(11.02x1%)+(23.06x1%)+(7.42X1%)
=.58+.376+.5736+.25+.0679+.0295+.0905+.1102+.2306+.0742
=$2.3825
Total Fixed Expenses/$6.7355-$2.3825
$22,024/$4.353
= 5059.49 units
Rounded 5060 Units
The company will have to sell 5060 units to break-even. Below is the number of units each product to be sold:
Spicy Choc Truffle Bars(5060 x 50%)= 2530 units
¼ Pound Muslin Bag (5060X16%)=809.6 units
½ Pound Tin(5060x12%)=607.2 units
Hot Carmel Dessert Sauce (5060x10%)=506 units
Sampler Bag (5060X7%)=354.2 units
¼ Pound Gift Box(5060x1%)=50.6 units
1 Pound Gift Box(5060x1%)=50.6 units
Gift Bucket(5060x1%)=50.6 units
Gift Basket(5060x1%)=50.6 units
Nothing Fancy(5060x1%)=50.6 units
Total number of Units rounded:5060
Breakeven in dollars
Spicy Choc Truffle Bars(2530 x 2.99)= $7,564.70
¼ Pound Muslin Bag (809.6X6.95)=$5626.72
½ Pound Tin(607.2x14.95)=$9,077.64
Hot Carmel Dessert Sauce (506x5.95)=$3010.70
Sampler Bag (354.2X2.95)=$1,044.89
¼ Pound Gift Box(50.6x8.95)=$452.87
1 Pound Gift Box(50.6x24.95)=$1262.47
Gift Bucket(50.6x39.95)=$2021.47
Gift Basket(50.6x59.95)=$3033.47
Nothing Fancy(50.6x19.50)=$986.70
Break-even point in dollars=$34,081.63
Breakevenpoint in dollars rounded=$34,082
2.
Breakeven=Total Fixed Expenses/Weighted Average Selling Price-Weighted Average Variable Expenses
Using Suggested Retail Prices:
Weight Average Selling price= (2.99x50%)+(6.95X16%)+(14.95x12%)+(5.95x10%)+(2.95x7%)+(8.95x1%)+(24.95x1%)+(39.95x1%)+(59.95x1%)+(19.50X1%)
=1.495+1.112+1.794+.595+.2065+.0895+.2495+.3995+.5995+.195
=$6.7355
Weighted Average Variable Expenses=
(1.16x50%)+(2.35X16%)+(4.78x12%)+(2.5x10%)+(.97x7%)+(2.95x1%)+(9.05x1%)+(11.02x1%)+(23.06x1%)+(7.42X1%)
=.58+.376+.5736+.25+.0679+.0295+.0905+.1102+.2306+.0742
=$2.3825
Total Fixed Expenses/$6.7355-$2.3825
$22,024/$4.353
= 5059.49 units
Rounded 5060 Units
The company will have to sell 5060 units to break-even. Below is the number of units each product to be sold:
Spicy Choc Truffle Bars(5060 x 50%)= 2530 units
¼ Pound Muslin Bag (5060X16%)=809.6 units
½ Pound Tin(5060x12%)=607.2 units
Hot Carmel Dessert Sauce (5060x10%)=506 units
Sampler Bag (5060X7%)=354.2 units
¼ Pound Gift Box(5060x1%)=50.6 units
1 Pound Gift Box(5060x1%)=50.6 units
Gift Bucket(5060x1%)=50.6 units
Gift Basket(5060x1%)=50.6 units
Nothing Fancy(5060x1%)=50.6 units
Total number of Units rounded:5060
Breakeven in dollars
Spicy Choc Truffle Bars(2530 x 2.99)= $7,564.70
¼ Pound Muslin Bag (809.6X6.95)=$5626.72
½ Pound Tin(607.2x14.95)=$9,077.64
Hot Carmel Dessert Sauce (506x5.95)=$3010.70
Sampler Bag (354.2X2.95)=$1,044.89
¼ Pound Gift Box(50.6x8.95)=$452.87
1 Pound Gift Box(50.6x24.95)=$1262.47
Gift Bucket(50.6x39.95)=$2021.47
Gift Basket(50.6x59.95)=$3033.47
Nothing Fancy(50.6x19.50)=$986.70
Break-even point in dollars=$34,081.63
Breakevenpoint in dollars rounded=$34,082