Multiple-product profit analysis.Coney Island produces two types of hotdogs,chili dogs and cheese dogs,with the following characteristics:

The total fixed costs for the company are $100,000.
Required:
a.What is the anticipated level of profits for the expected sales volumes?
b.Assuming that the product mix would be 75 percent chili and 25 percent cheese at the break-even point,compute the break-even volume.
c.If the product sales mix were to change to four chili dogs for each cheese dog,what would be the new break-even volume?

Question

Multiple-product profit analysis.Coney Island produces two types of hotdogs,chili dogs and cheese dogs,with the following characteristics:
  
The total fixed costs for the company are $100,000.
Required:
a.What is the anticipated level of profits for the expected sales volumes?
b.Assuming that the product mix would be 75 percent chili and 25 percent cheese at the break-even point,compute the break-even volume.
c.If the product sales mix were to change to four chili dogs for each cheese dog,what would be the new break-even volume?

Quizplus · Accepted Answer

The Answer of Multiple-product profit analysis.Coney Island produces two types of hotdogs,chili dogs and cheese dogs,with the following characteristics:
  
The total fixed costs for the company are $100,000.
Required:
a.What is the anticipated level of profits for the expected sales volumes?
b.Assuming that the product mix would be 75 percent chili and 25 percent cheese at the break-even point,compute the break-even volume.
c.If the product sales mix were to change to four chili dogs for each cheese dog,what would be the new break-even volume?

Multiple-Product Profit Analysis