Question: Required: weighted average contribution margin per unit unit sales mix (chocolate:caramel) total bags to be sold to breakeven sales units for chocolate popcorn to breakeven

Required: weighted average contribution margin

Required: weighted average contribution margin per unit

unit sales mix (chocolate:caramel)

total bags to be sold to breakeven

sales units for chocolate popcorn to breakeven

sales units for caramel popcorn to breakeven

sales dollars for chocolate popcorn to breakeven

sales dollars for caramel popcorn to breakeven

margin of safety in %

1. PopARoo sells two flavors of popcorn - chocolate and caramel, both sold in 1 pound bags. Information on sales for July follow: Number of bags Sales Variable costs Fixed costs Operating income Selling price per unit Contribution margin per unit Chocolate 9,000 $72,000 27,000 24,000 $21,000 $8.00 $5.00 Caramel Totals 15,000 $132,000 42,000 54,000 $36,000 6,000 $60,000 15,000 30,000 $15,000 $10.00 $7.50

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