Candyland Inc. produces a particularly rich praline fudge. Each $10-$ounce box sells for $$5\mathrm{.}60.$ Variable unit costs are as follows:

Required:

What is the contribution margin per unit for a box of praline fudge?

$

What is the contribution margin ratio?

$\%$

How many boxes must be sold to break even?

$$ boxes

What is the break$-$even sales revenue?

$

$$

What was Candyland's operating income last year?

$

$$

What was the margin of safety in sales dollars?

$

Conceptual Connection: Suppose that Candyland Inc. raises the price to $$6\mathrm{.}20$ per box but anticipates a sales drop to $31,500$ boxes. What will be the new break$-$even point in units?

$$ units

Should Candyland raise the price?

$,$ operating income will

$$ by $

$x.$