Question

Ali's Bagel Land only sells coffee and bagels. Ali said he'd sell four cups of coffee for each bagel he'd sell.

estimated. The cost information of Ali's products, which are budgeted for 2019, is as follows:

                    Coffee II Bagel

Sales Price 2.50 TL II 3.75 TL

Items that make up the product 0.25 TL II 0.50 TL

Hourly sales staff (one product) 0.50 TL II 1.00 TL

Packaging 0.50 TL II 0.25 TL

Fixed costs:

Store and equipment rent 5000 TL

Marketing and advertising cost 2000 TL

Requested:

1. Assuming we already know that the sales mixture is four cups of coffee in a bagel,

To reach it, calculate how many cups of coffee Ali must sell and how many bagels he must sell.

2. If the sales mix is four cups of coffee in a bagel, Ali's pre-tax operating profit is 28,000 TL

calculate how many of each product it should sell.

3. Suppose Ali adds pie to the sales mix. The sale price of the pie is 3 TL and the corresponding variable cost is 0.75 TL. Assuming the sales mixture has two bagels and a pie in three cups of coffee,

Calculate how many pieces Ali must sell from each product to reach break-even point.

Answer 1

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