'Star Bakery Pvt. Ltd.' produces two types of cakes- Chocolate Cake and Vanilla Cake. The company wants to know the break-even point of each type of cake. For the same, the following information is available:
Total fixed cost is Rs. 1,15,600.
On the basis of the given text, answer the following questions -
Calculate the break-even point in units of sales mix.
Show Hint
For multi-product break-even calculations, always compute the Weighted Average Contribution (WAC) first:
$$\text{WAC} = (\text{Contribution}_A \times \text{Mix}_A) + (\text{Contribution}_B \times \text{Mix}_B)$$
Then, divide the Total Fixed Cost by this WAC to find the composite break-even units.
