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The Dark Chocolate Division of Yummy Snacks, Incorporated had the following operating results last year: Sales (150,000 pounds of chocolate) $ 60,000 Variable expenses 37,500
The Dark Chocolate Division of Yummy Snacks, Incorporated had the following operating results last year:
Sales (150,000 pounds of chocolate) | $ 60,000 |
---|---|
Variable expenses | 37,500 |
Contribution margin | 22,500 |
Fixed expenses | 12,000 |
Profit | $ 10,500 |
Assume that the Dark Chocolate Division is currently operating at its capacity of 150,000 pounds of chocolate. If the Peanut Butter Division wants to purchase an additional 20,000 pounds of chocolate from the Dark Chocolate Division,what amount per pound of chocolate would Dark Chocolate have to charge Peanut Butter in order to maintain its current profit?
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