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Scott Confectionery sells its Stack-o-Choc candy bar for $0.60. The variable cost per unit for the candy bar is $0.34; total fixed costs are $171,000.
Scott Confectionery sells its Stack-o-Choc candy bar for $0.60. The variable cost per unit for the candy bar is $0.34; total fixed costs are $171,000.
a. What is the contribution margin per unit for the Stack -O- Choc candy bar?
b. What is the contribution margin ratio for the Stack -O-Choc candy bar?
C. What is the breakdown point in units? In sales dollars?
D. If an increase in chocalate prices causes the variable cost per unit to increase to $0.55, what will happen to the breakeven point?
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