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Multiple Product CVP Analysis:

by | Nov 28, 2023 | business and finance

B. Multiple Product CVP Analysis: Hawaiian fruit pizza was a great success and Fairfield Pizza has decided to introduce a second pizza line, Aloha seafood pizza, in addition to Hawaiian fruit pizza. Its fixed costs will be increased to $27,000 for month. Aloha pizza is expect to sell at $35 each and its variable cost per pizza is $20. Fairfield pizza expects to sell 60% for Hawaiian fruit pizza and 40% for Aloha seafood pizza. ? (1) What is unit contribution margin for Hawaiian fruit pizza and Aloha seafood pizza? ? (2) What is the new breakeven in units and in sales dollar of each pizza?? (3) How many pizzas of each type must be sold to earn after tax profit of $21,600 when tax rate is 40%

SOLUTIONSGIVEN :Selling price p.u.Variable CostContribution p.uContribution margin ratioShare in volume soldTotal Fixed cost Hawaiian Pizza Aloha Pizza30.0035.0010.0020.0020.0015.00…

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