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In: Accounting

The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold...

The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold cashews by a margin of 2 to 1 in cans. sales of almonds were half the sales of cashews in cans. fixed costs for the nut house are 20,000 . almonds: unit sales Price:8.00 unit variable:4.00 cashews:unit sales price:10.00 unit variable:5.00 Pistachios: unit sales price:6.00 unit variable cost: 4.00 what is the breakeven sales volume and dollars for each nut rounded?

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Expert Solution

A PU Sale Price PU* Qty VC PU* Qty Sales-Variable Cost
Ratio of Sales Sale Volume Split Basis Ratio Sale Price Variable Cost Sale Price Variable Cost CM
Almonds 0.50 1429 8.00 4.00 11429 5714 5714
Cashews 1.00 2857 10.00 5.00 28571 14286 14286
Pistachios 2.00 5714 6.00 4.00 34286 22857 11429
3.50 10000 31429
Weighted Av CM PU 3.14 (31429/10000)
Break Even Point:
In Sales Units:
Fixed Cost 20000
Weighted Av CM PU 3.14
Break Even Units 6364
Break Up:
Ratio of Sales Units
Almonds 0.50 909 (6364/3.5*0.5)
Cashews 1.00 1,818 (6364/3.5*1)
Pistachios 2.00 3,636 (6364/3.5*2)
3.50 6,364
Break Even Point:
Units Sales Price PU Sales Value
Almonds 909 8.00 7273
Cashews 1,818 10.00 18182
Pistachios 3,636 6.00 21818
6,364 47273

ekkarill92 answered 5 days ago
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