Question
Bonbons Ronds is a wholesaler of sweets. The company distributes its products to grocery stores, convenience stores and pharmacies in a large metropolitan area. Management
Bonbons Ronds is a wholesaler of sweets. The company distributes its products to grocery stores, convenience stores and pharmacies in a large metropolitan area. Management wants to plan operations for the next fiscal year. Here is the data relating to the fiscal year just ended: Average selling price (per box) $ 4.00
Average variable costs (per box): Cost of purchasing candy (per box): $ 2.00 Selling fee (per box): $ 0.40 Total (per box): $ 2.40
Total annual fixed costs Selling fees: $ 160,000 Administration costs: $ 280,000 Total: $ 440,000
Actual sales for the year (390,000 boxes) $ 1,560,000 Net income $ 110,400 Tax rate 40%
Work to do Determine the number of boxes of candies that the company Bonbons Ronds could have sold this year for a net profit of $ 240,000.
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