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17. Candyland Inc. produces a particularly rich praline fudge. Each 10-ounce box sells for $5.60. Variable unit costs are as follows: Pecans $0.70 Sugar 0.35
17. Candyland Inc. produces a particularly rich praline fudge. Each 10-ounce box sells for $5.60. Variable unit costs are as follows: Pecans $0.70 Sugar 0.35 Butter 1.85 Other ingredients 0.34 Box, packing material 0.76 Selling commission Fixed overhead cost is $32,300 per year. Fixed selling and administrative costs are $12,500 per year. Candyland sold 35,000 boxes last year. 0.20 e) What was Candyland's profit last year? f) Suppose that Candyland Inc. raises the price to $6.20 per box but anticipates a sales drop to 31,500 boxes. What will be the new break-even point in units? g) Should Candyland raise the price? h) Prepare the CVP graph with Q as the horizontal axis and $ as the vertical axis. Draw the profit line for when the price is $5.60 and when it is raised to $6.20
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