(b) Your answer is incorrect. Calculate the selling price per box that All-Day Candy Company must charge to cover the 15% increase in the variable cost of candy and still maintain the current contribution margin ratio. (Round answer to 2 decimal places, e.g. 1.25.) Selling price per box $ eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer 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 Company has achieved small but steady growth in sales over the past few years, but costs have also been increasing. The company is formulating its plans for the coming fiscal year. The following data were used to project the current year's after-tax operating income of $969,600: Average selling price $8.00 per box Average variable costs Cost of candy $4.00 per box Selling expenses 0.80 per box Total $4.80 per box Annual fixed costs Selling Administrative Total $320,000 560,000 $880,000 The expected annual sales volume (780,000 boxes) is $6,240,000 and the tax rate is 40%. Candy manufacturers have announced that they will increase the prices of their products by an average of 15% in the coming year because of increases in raw material (sugar, cocoa, peanuts, and so on) and labour costs. All-Day Candy Company expects that all other costs will remain at the same rates or levels as during the current year