Question
Chocolate Extreme sells both hard candy and chocolate candy . The current sales mix is 3 units of hard candy for every 2 units of
Chocolate Extreme sells both hard candy and chocolate candy. The current sales mix is 3 units of hard candy for every 2 units of chocolate candy. Hard candy is priced at $12 and has a variable cost of $8 per unit, while chocolate candy is priced at $7 and has a variable cost of $5 per unit. The companys fixed costs are $42,000 in total.
What is the number of hard candy to be sold at break-even?
Group of answer choices
A. 2,625 units
B. 6,000 units
C. 7,875 units
D. 5,250 units
How many packages (each of which contains hard candy and chocolate candy in the ratio of sales mix) need to be sold to break even?
Group of answer choices
A. 7,000 packages
B. 3,000 packages
C. 1,400 packages
D. 2,625 packages
Using the sales mix stated in the above information to form a package, what is the expected contribution margin from a single package sold?
Group of answer choices
A. $30
B. $16
C. $6
D. $14
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