A company offers three (3) products for sale: candies, ice-pops and sandwiches. The following information is available for the three products: Candies Ice-pops Sandwiches Selling price $25 $40 $80 Variable cost $15 $24 $50 Contribution margin $10 $16 $30 Expected sales 30,000 12,000 6,000 Fixed costs are $280,000. a) Assuming the sales mix does not change, what would be the break-even sales in dollars for candies? b) Assuming the sales mix does not change and if target net income before tax for the coming year is $70,000, how many units of ice-pops must be sold? c) What is Lily Fan Company's margin of safety?

Answer rating: 100% (QA)

a The breakeven sales in dollars for candies can be calculated by using the following formula Breake... View the full answer