Question: Professionally prepare this information using Excel or Word. Set up the information, formatted, and using borders and tables as needed. Candyland Inc. produces a particularly
Professionally prepare this information using Excel or Word. Set up the information, formatted, and using borders and tables as needed.


Candyland Inc. produces a particularly rich praline fudge. Each 10-ounce box sells for $5.60. Variable unit costs are as follows: Pecans S0.70 Sugar S0.35 Butter S1.85 Other Ingredients S0.34 Box, packing materials S0.76 Selling Commission S0.20 Fixed overhead cost is $32,300 per year. Fixed selling and administrative costs are $12,500 per year. Candyland sold 35,000 boxes last year. 1. Contribution per unit: 1.4 a. Contribution margin ratio: 25% 2. Break-even point in units: 32,000 units a. Break-even sales revenue: $179,200 3. Net operating income: $4,200 4. Margin of safety: $16,800 5. If Candyland wants to earn $11,200, how many boxes do they need to sell? 22,400 units
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
