Arden Florists sells three types of bouquets at a kiosk in the mall: Carnations, Roses, and Mixtures. They sold 10,000 bouquets last year. Mixtures outsold Roses by a margin of 2 to 1. Sales of Carnations were the same as sales of Roses. Fixed costs for Arden Florists are $19,500 and additional information follows:

1. Calculate the sales mix percentage of all three products (based upon the number of bouquets).
2. Calculate the weighted average contribution margin for all three types of bouquets.
3. Calculate the break-even volume in number of bouquets.
4. Calculate the break-even sales in dollars.

Question

Arden Florists sells three types of bouquets at a kiosk in the mall: Carnations, Roses, and Mixtures. They sold 10,000 bouquets last year. Mixtures outsold Roses by a margin of 2 to 1. Sales of Carnations were the same as sales of Roses. Fixed costs for Arden Florists are $19,500 and additional information follows:
 
 1. Calculate the sales mix percentage of all three products (based upon the number of bouquets).
2. Calculate the weighted average contribution margin for all three types of bouquets.
3. Calculate the break-even volume in number of bouquets.
4. Calculate the break-even sales in dollars.

Quizplus · Accepted Answer

The Answer of Arden Florists sells three types of bouquets at a kiosk in the mall: Carnations, Roses, and Mixtures. They sold 10,000 bouquets last year. Mixtures outsold Roses by a margin of 2 to 1. Sales of Carnations were the same as sales of Roses. Fixed costs for Arden Florists are $19,500 and additional information follows:
 
 1. Calculate the sales mix percentage of all three products (based upon the number of bouquets).
2. Calculate the weighted average contribution margin for all three types of bouquets.
3. Calculate the break-even volume in number of bouquets.
4. Calculate the break-even sales in dollars.

Arden Florists Sells Three Types of Bouquets at a Kiosk