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Calculate the break-even point for multi-product scenario

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Reference no: EM132509710

Cobblestone, Inc. is a new company, which plans to make decorative planters in two sizes: large and small.

The current budget plan for the first year of operations provides the following information:

                                                      Small                      Large

Budgeted # of Units              3,600.                      1,200

Revenue per unit.                        $20                    $30

Variable cost per unit.                    $14                    $18

Fixed cost per unit

(based on budgeted units)              $9                        $13

Required

Question 1: Show two ways to calculate the break-even point for this multi-product scenario, and identify the assumption each method is most susceptible to.

Reference no: EM132509710

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