Question
Ultimate Jelly Company manufactures two different types of jelly, one with sugar (Jelly) and one without sugar (Simply Jelly). The following information is available for
Ultimate Jelly Company manufactures two different types of jelly, one with sugar (Jelly) and one without sugar (Simply Jelly).
The following information is available for the two products:
Jelly Simply Jelly
Sale Price Per Unit $5 $7
Variable Expense Per Unit $3 $6
Total fixed expenses are estimated at $350,000. One jar of Jelly is sold for every 1 1/2 jars of Simply Jelly.
a)Determine the breakeven sales in units of both products.
b)Compute the target sales in dollars if Ultimate Jelly wants to earn $70,000 in operating income
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