Question
The Milk Inc. has the following operating results for making 150,000 pounds of chocolate: Sales $60,000 Variable expense 37,500 Contribution margin 22,500 Fixed Expenses 12,000
The Milk Inc. has the following operating results for making 150,000 pounds of chocolate:
Sales $60,000
Variable expense 37,500 Contribution margin 22,500
Fixed Expenses 12,000
Net operating Income 10,500
The Milk Chocolate Division has the ability to produce and sell 200,000 pounds of chocolate annually. Assume that The Peanut Butter Inc. wants to purchase 60,000 pounds of chocolate from The Milk Inc. Under these conditions, what amount per pound of chocolate would The Milk Inc. have to charge Peanut Butter Inc. for this special order in order to maintain its current profit?Round your answer to two decimals.
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