Simply Snacks makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Simply Snacks makes a variety of candies, the cost differences are insignificant, and the cases all sell for the same price. Simply Snacks has a total capital investment of $13,000,000. It expects to produce and sell 600,000 cases of candy next year. Simply Snacks requires a 12% target return on investment. Expected costs for next year are:

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Data Table Variable production costs $4.50 per case Variable marketing and distribution costs $2.50 per case Fixed production costs $440,000 Fixed marketing and distribution costs $900,000 Other fixed costs S700,000 Data Table Variable production costs $4.50 per case Variable marketing and distribution costs $2.50 per case Fixed production costs $440,000 Fixed marketing and distribution costs $900,000 Other fixed costs S700,000

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