Answer:
Break even in total guests is 1500 guests.
Break even in Regular guests is 750 guests.
Break even in Discount guests is 750 guests.
Explanation:
Break even in units is the total number of units where the total revenue equals total cost. The formula for break even in units is,
Break even in units = Fixed costs / Contribution margin per unit
a.
To calculate the composite break even point or a common break even point when there are more than one product, we use weighted average contribution per unit.
Weighted average contribution per unit = Contribution per unit of Product A * Weight of product A in sales mix + Contribution per unit of product B * Weight of Product B is sales mix
Weighted average contribution margin per unit = (75 - 15) * 0.5 + (35 - 15) * 0.5 = 40 per unit
Break even in total guests = 60000 / 40 = 1500 units/guests
Break even per product = Total break even in units * weight of product in sales mix
Break even in Regular guests = 1500 * 0.5 = 750 units
Break even in Discounted guests = 1500 * 0.5 = 750 units
