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Please provide with workings and explanations. CoursHeroTranscribedText: 4-29 * * * Sales mix, three products...

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Accounting

Please provide with workings and explanations.

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CoursHeroTranscribedText: 4-29 * * * Sales mix, three products OBJECTIVES 1, 2, 7 Bobbie's Cafe sells only coffee and lunch rolls. Bobbie estimates that every time she sells one lunch roll, she sells four cups of coffee. The budgeted cost information for Bobbie's products for 2014 follows: Coffee Lunch rolls Selling price $2 50 $3.75 Product ingredients SO.25 $0.50 Hourly sales staff (cost per unit) $0.50 $1.00 Packaging $0.50 SO.25 Fixed costs Rent on store and equipment $5000 Marketing and advertising cost $2000 Required 1 How many cups of coffee and how many lunch rolls must Bobbie sell in order to break even, assuming the sales mix of four cups of coffee to one lunch roll given previously? 2 If the sales mix is four cups of coffee to one lunch roll, how many units of each product does Bobbie need to sell to earn operating profit before tax of $28 000? 3 Assume that Bobbie decides to add the sale of muffins to her product mix. The selling price for muffins is $3.00 and the related variable costs are $0.75. Assuming a sales mix of three cups of coffee to two lunch rolls to one muffin, how many units of each product does Bobbie need to sell in order to break even? Comment on the results

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