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Sweet Sue, Inc., produces a particularly rich praline fudge. Each 10-ounce box sells for $5.50. Variable unit costs are as follows: Pecans $0.75 Sugar 0.35
Sweet Sue, Inc., produces a particularly rich praline fudge. Each 10-ounce box sells for $5.50. Variable unit costs are as follows:
Pecans $0.75
Sugar 0.35
Butter 1.75
Other ingredients 0.24
Box, packing material 0.76
Selling commission 0.55
Fixed overhead cost is $24,000 per year. Fixed selling and administrative costs are $9,000 per year. Sweet Sue sold 35,000 boxes last year.
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? What is the break-even sales revenue?
- What was Sweet Sue
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