Pharoah Candy Company is a wholesale distributor of candy. The company services grocers, convenience stores, and drugstores in a large metropolitan area. Pharoah 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 $387,840: $8.00 per box Average selling price Average variable costs Cost of candy Selling expenses Total Annual fixed costs Selling Administrative Total $4.00 per box 0.80 per box $4.80 per box $358,400 504,000 $862,400 The expected annual sales volume (873,600 boxes) is $6,988,800 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. Pharoah Candy Company expects that all other costs will remain at the same rates or levels as during the current year. (a) Calculate Pharoah Candy Company's break-even point in boxes of candy for the current year. Break-even point units Touthookand Media Your answer is correct. Calculate the selling price per box that Crane 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 $ 9 e Textbook and Media Attempts: 1 of 2 used (c) X Your answer is incorrect. Calculate the volume of sales in dollars that Crane Candy Company must achieve in the coming year to keep the same operating income after taxes that was projected for the current year if the selling price of candy remains at $8.00 per box and the cost of candy increases by 15%. (Round contribution margin ratio to 2 decimal places, e.g. 15.25% and final answer to 0 decimal places, e.g. 125.) Volume of sales to be maintained $ 47,59,138