Multiple Product CVP Analysis:
Hawaiian fruit pizza was a huge success and Fairfield Pizza has decided to start a second pizza line, Aloha seafood pizza, in addition to Hawaiian fruit pizza. Its fixed costs may be increased to $27,000 for month. Aloha pizza is expected to sell at $35 each and its variable cost per pizza is $20. Fairfield pizza expected to sell 60% for Hawaiian fruit pizza and 40 percent for Aloha seafood pizza.
(1) Determine unit contribution margin for Hawaiian fruit pizza and Aloha seafood pizza?
(2) Evaluate the new breakeven in units and in sales dollar of each pizza?
(3) How many pizzas of every type must be sold to earn after tax profit of $21,600 when tax rate is 40 percent