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The Snack Hut sells fudge, cashews, and caramel corn. They sold 10,000 units last year. Caramel corn outsold cashews by a ratio of 2 to
The Snack Hut sells fudge, cashews, and caramel corn. They sold 10,000 units last year. Caramel corn outsold cashews by a ratio of 2 to 1. Sales of fudge were the same as sales of cashews. Fixed costs for The Snack Hut are $19,500. Additional information follows: Product Unit Sales Prices Unit Variable Cost Fudge $8.00 $4.00 Cashews $10.00 $5.00 Caramel Corn $6.00 $4.50 The weighted average contribution margin for the three products of The Snack Hut is O A. $2.44. O B. $12.00 O c. $48.00. OD. $3.00. Management at the Trapper Company currently sells its products for $200 per unit and is contemplating a 50% increase in the selling price for the next year. Variable costs are currently 25% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will still pay the same variable cost per unit). Fixed expenses are $120,000 per year. If fixed costs were to decrease 10% during the current year and the new selling price goes into effect, how many units will need to be sold to break even? A. 377 units B. 432 units O C. 132,000 units OD. 880 units Angry Bird produces decorative birdhouses. The company's average cost per unit is $40.00 at a production level of 2,000 birdhouses. What is the total cost of producing 2,000 birdhouses? What is the total cost of producing 2,000 birdhouses? O A. $40 O B. $40,000 C. $20,000 O D. $80,000
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