Presented below is one possible answer to this case using only information provided in the case with
the following assumptions: 1) the milkshake’s sales-mix will be 60% large and 40% small, 2) the
suggested sales prices are used to be competitive with other vendors, and 3) the milkshake makers, tables
and benches are assumed to last for 3 years, but the refrigerator/freezer and counter tops are assumed to
last for 10 years and the sign is assumed to last only one year. Since this is a simulation exercise, the case
allows students to see how the break-even sales volume changes depending upon different assumptions
about product sales-mix, sale prices, depreciable lives of long-term assets as well as variable costs, and
allows them to add other necessary fixed costs to the cost structure of the business conditional on their
own unique business strategy. Consequently, their answers may vary.