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Question: 248 sales mix and breakeven analysis ritebeverage bottling company produces...

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24-8. Sales mix and break-even analysis. Rite-Beverage Bottling Company produces a variety e bottled drinks. The company has classified its products into these three basic categories SALES PRICE VARIABLE COST BRAND PER CASE PER CASE Trade-Name. True-Ade..$1.50 Dietary. $1.40 1.20 1.00 1.00 40 The fixed cost of the company is $37 240 annually and does not change with any changer product mix or with total volume changes of less than 50%. During 19A, sales of Trade-Name Dietary. Total sales revenue for the year was $500,000. Required: accounted for 50% of the companys total sales in cases. Sales of True-Ade were four times that (1) The break-even sales in dollars and units of, each product group for 19A, based on o d actually experienced sales mix. (Round the contribution margin ratio to tw places.) (2) The amount which could be spent for advertising in 198 to increase sales of the mo 0f profitable lines, with the company making a profit of one and one-half times tn the-same total sales revenue, and Tru-Ade sales accounting for 60% of sal imes that of Ta in case 19A s In Dietary, 20%; and Trade-Name, 30%.

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