Scott Confectionery sells its Stack-o-Choc candy bar for $0.80. The variable cost per unit for the candy

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

Required

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 breakeven point in units? In sales dollars?

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

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Managerial Accounting

ISBN: 9781119577669

4th Edition

Authors: Charles E. Davis, Elizabeth Davis

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Question Posted: May 04, 2021 02:40 AM

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Scott Confectionery sells its Stack-o-Choc candy bar for $0.80. The variable cost per unit for the candy

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a 080 045 035 b Contribution margin ratio 035080 04375 or 43...View the full answer

Managerial Accounting

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