Question
Iggys Ice Pops produces two flavors of ice pops. Information regarding the products is summarized for the month of April below: Kiwi Melon Total Number
Iggys Ice Pops produces two flavors of ice pops. Information regarding the products is summarized for the month of April below:
Kiwi Melon Total
Number of units 2,000 3,000 5,000
Sales revenue $3,000 $3,600 $6,600
Variable costs 1,500 900 2,400
Fixed costs 900 2,400 3,300
Profit $ 600 $ 300 $ 900
a. If Iggys sells 50 more kiwi pops, by how much will profit increase?
b. How much is Iggys weighted average contribution margin ratio?
c. What level of sales does Iggys need in order to earn a profit of $1,200 assuming the current sales mix? (Round to the nearest dollar.)
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