Question: Scott Confectionery sells its Stack-0-Choc candy bar for $0.80. The variable cost per unit for the candy bar is $0.45; total fixed costs are $175,000.

Scott Confectionery sells its Stack-0-Choc candy bar for $0.80. The variable cost per unit for the candy bar is $0.45; total fixed costs are $175,000.

a. What is the contribution margin per unit for the Stack -O- Choc candy bar?

b. What is the contribution margin ratio for the Stack -O-Choc candy bar?

C. What is the breakdown point in units? In sales dollars?

D. If an increase in chocalate prices causes the variable cost per unit to increase to $0.55, what will happen to the breakeven point?

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