|The Grandma Corporation manufactures two productscookies and candy. Cookies have a contribution margin of $5 per box,

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|The Grandma Corporation manufactures two products—cookies and candy. Cookies have a contribution margin of $5 per box, and candy has a contribution margin of $4 per bag. Grandma’s total fixed cost is currently $450,000. Grandma expects to sell two boxes of cookies for every three bags of candy sold. Boxes of cookies and bags of candy each sell for $10.

Required: (1) Compute the contribution margin percentage per “unit.”

(2) At the current product mix, what total dollar sales volume is required for Grandma to earn a pretax income of $144,000? Lo1

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Accounting Information For Business Decisions

ISBN: 9780030224294

1st Edition

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley

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