Question
The Raisin Division of Trail Mix Foods, Incorporated had the following operating results last year: Sales (170,000 pounds of raisins) $ 76,500 Variable expenses 40,800
The Raisin Division of Trail Mix Foods, Incorporated had the following operating results last year: Sales (170,000 pounds of raisins) $ 76,500 Variable expenses 40,800 Contribution margin 35,700 Fixed expenses 22,000 Profit $ 13,700 Raisin expects identical operating results this year. Assume that the Raisin Division is currently operating at its capacity of 170,000 pounds of raisins. Also assume that the Peanut Division wants to purchase an additional 40,000 pounds of raisins from the Raisin Div
ision. Under these conditions, what amount per pound of raisins would the Raisin Division have to charge the Peanut Division in order to maintain its current profit?
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