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B. The YuckiCandy Co. makes and sells boxes of chocolate candy.Yucki has fixed expenses of $195,000 each month plus variable expenses of $6.00 per box
B.
The YuckiCandy Co. makes and sells boxes of chocolate candy.Yucki has fixed expenses of $195,000 each month plus variable expenses of $6.00 per box of candy.Yucki sells each box of candy for $10.00.
- Compute the contribution margin of each box of candy.
- Compute the number of boxes of candy that Yucki must sell each month to break even.Round up to the nearest whole box.
- Compute the contribution margin ratio for a box of candy
.
- Compute the dollar amount of monthly sales Yucki needs to earn $2500,000 in profit.(Round the contribution margin ratio to four decimal places.Round salesupto the nearest dollar.)
- Prepare Yucki's contribution margin income statement for June for sales of 275,000 boxes of candy.
- What is the degree of leverage for June sales of275,000 boxes of candy? (Carry answer out to four decimal places.)
- What is June's margin of safety (in dollars and cents)?
- By what percentage will operating income change if June's sales volume is 25% higher?(Round to two decimal places.)
- Prove your answer by comparing the difference in operating income after the change with the operating income before the change.
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