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All day Candy Company is a wholesale distributor of candy. The company services grocery, convenience, and drug stores in a large metropolitan area. All Day

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All day Candy Company is a wholesale distributor of candy. The company services grocery, convenience, and drug stores in a large metropolitan area. All Day Candy has achieved small but steady growth in sales over the past few years but because of supply chain issues prices have also been increasing. The company is formulating its plans for the coming fiscal year. The following data were used to project next year's (2023) results. The expected annual sales volume is 780,000 boxes. Now, manufacturers of the candy have just announced that as of next year (2024) they will, again, increase their prices of the candy by 15% because of the increases in raw materials and labour costs. All day Candy expects that all the other costs will remain at the same rates or levels during the current year. Required: 1. What is the break-even point in boxes of candy for 2023 ? 2. What is the expected profit or loss for 2023? 3. What selling price per box must All-Day Candy charge in 2024 to cover the 15% increase in the variable costs of the candy and still maintain the current contribution margin ratio? 4. What volume of sales in dollars must All-Day Candy achieve in 2024 to keep the same net income that was projected for 2023 if the selling price of the candy remains at $8 per box and the cost of candy increases by 15%. 5. Refer to \# 4. What will the margin of safety be for 2024

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