During its 3rd year of business, Pete's Pasta estimates that 415,000 pastas (385,000 meaty pastas and 30,000 veggie) will be made. Direct material costs per unit are $.74 per meaty pasta and $.62 per veggie pasta. Direct labor costs are $2.51 per meaty pasta and $2.78 per veggie pasta. Monthly fixed selling and administrative costs are $15,300 while monthly fixed manufacturing overhead is $2,851. The variable overhead cost is $.55 per pasta. The sales price for veggie pastas is $5.25 per pasta and the sales price for meaty pastas is $5.00.
A) How will the break even point change if the sales mix changes to 80% meaty pastas and 20% veggie pastas?
B) What would happen to the break even point if the labor costs increased by 10%?
C) What would happen to the break even point if Pete's Pasta increased the sales price of meaty pastas to $5.25 and veggie pastas to $5.50?